This is the blog of CANTER New England. The blog will provide Thoroughbred lovers with:
• Information on retirement, and transitioning horses to life post-racing
• Details on assisting with horse welfare efforts
• Information on common questions from prospective adopters
• Success stories (and success stories that are waiting to happen!)
There is a plaque in the National Museum of Racing that highlights some incredible facts about Thoroughbreds…Thought that we’d share:
Coming out of the starting gate a Thoroughbred will accelerate to 40 miles-per-hour in six strides. A Ferrari accelerates from a standing start to 60 miles-per-hour in 5 1/2 seconds; a horse can reach 42 miles-per-hour in 2 1/2 seconds.
The force on horse’s front hoof is at its greatest point when it hits the track — about 2,500 pounds. The force on its cannon bone is 10-12,000 pounds; the bone breaks at 18,000 pounds.
The inhales and exhales once every stride. At 0.42 seconds per stride it completes 2 1/2 breathing cycles a second.
At full gallop the horse takes in five gallons of air per second. From that air it extracts one quart of air through its lungs, transmitting that energy-fuel throughout its bloodstream.
From rest to top speed a horse’s heart rate increases by 10x, a man’s by only 4x.
“So the horse that walks around, eats grass, looks at the view and gives every appearance of tranquility was, in fact, designed by God to explode.” — Dr. George Pratt
Golden Days, aka “Daisy” has spent a summer under saddle learning the basics of dressage–balance, relaxation, flexion–and she did so well that she’s even been to a show! Only weeks after starting training she went to a schooling show and finished 4th out of 12 horses! Not bad for a “newbie”!
Her foster Mom reports that she is wonderful to work with and she is quick to learn. We’re looking for that perfect home for her–if you want a horse with some miles under it’s belt, check out Daisy!
This article comes to us courtesy of Carol Gordon, CPA, who specializes in helping equine business owners handle the tax side of their businesses…You can reach Carol at
What expenses are deductible related to buying and training a horse for sale?
It depends on many factors:
What was your intent when you purchased the horse? When you purchased the horse, was your intent to buy the horse, put some training into it and then resell it? OR – did you purchase the horse to use in your lesson program and it wasn’t a good fit, bought him as your own horse and you outgrew him, etc?
To document your intent, write a business plan at the time you purchase the horse including how long you will keep the horse, any shows and/or clinics you plan to attend, when and where you will advertise the horse and any other plans that demonstrate the business purpose of this purchase.
If you purchased the horse to train and sell, regular expenses such as feed, farrier, vet, etc would be deductible. BUT the amount that is deductible MAY be limited to the amount of your related income for that year. (See below)
Have you engaged in this type of business venture previously?
Is this horse one of a number of horses that you have purchased and sold? If you have a regular history of engaging in this type of business, then your related expenses would be deductible in the year that you incurred them.
Is this business venture part of a related equine business (lessons, boarding, training barn…) which is a significant source of income for you?
If you currently operate a related business, then buying and selling horses could be seen as a natural extension of your current business and all regular expenses should be deductible in the period in which they were incurred.
Please note that the related business should represent a significant source of income for you. If you board one horse in your barn in addition to your three but you work as a CPA full time, the IRS will probably not recognize your buying/selling activity as a regular business and the amount and timing of your deductible expenses may be limited.
Do you have income related to this activity in the current tax year?
If the IRS considers this buying/selling activity to be a hobby activity, then you may only deduct expenses to the extent of your income from this activity. So if you have no sales in the current year and this is deemed to be a hobby activity, no expenses are deductible.
Basically, it all boils down to whether or not the IRS would view this activity as a business or a hobby. If it is deemed a business, regular related expenses are deductible. If it is deemed a hobby, then only expenses less than or equal to your income from this activity in the same tax year would be deductible.
For example: Suzy bought Flame in Jan 2010. She trained him and sold him in Dec 2010. She paid $6,000 for him and sold him for $10,000. Her expenses related to keeping Flame for bedding, food, farrier, vet and occasional lessons were $5,000 in 2010.
If Suzy is a regular buyer/seller of horses or has a related equine business that the IRS would deem to be a business activity, here is the calculation for this transaction:
Horse sales price: $10000
Less horse purchase price: -$ 6000
Gross profit $ 4000
Less related expenses -$ 5000
Loss ($ 1000)
This loss can be applied against other income such as salary of spouse, investment income, etc.
If the IRS would deem this to be a hobby activity, Suzy can only deduct related expenses up to the amount of the gross profit ($4000) in this example. And if Suzy bought the horse in 2010 and sold it in 2011 (as a hobby activity) and had no other related income in 2010, she could not deduct any expenses incurred for this activity in 2010.
So what sometimes starts as a money-making opportunity can end as a tax nightmare. Be sure you understand all of the details of how this may impact your tax situation. It may still be a great idea to buy a horse, put some training in and then resell. You’ll have some extra income and NO Tax surprises on April 15.
For more information on how the IRS determines if your activity qualifies as a business or a hobby, visit my blog (link below) and read the August 2009 post.
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We just got some wonderful photos in from Miss Daisy’s foster Mom! Had to share a before-and-after moment…What a great little horse with a bright future!
Here is "Golden Days", aka "Miss Daisy" Right After Leaving Suffolk
Here's "Miss Daisy" Enjoying the Good Life
Daisy is bold, intelligent, quite a character and terrifically balanced and athletic under saddle. Whoever said that great things don’t come in small packages?
Figure eights on a 10M circle with flying transitions at the trot and canter. A wonderful hunter pace with exhilarating–but controlled–gallops across green fields. Gymnastic exercises over jumps and through water obstacles, adjusting strides and pace as asked…Can I simply gush a little about just how great my OTTB is???
My mare is a wonderful horse to ride: willing, balanced, athletic and game. She is fluid and pretty to watch.
I know that many people dismiss OTTBs as “crazy” or “all lame” or “too hot to trail ride”…On the hunter pace I rode with a CANTER adoptive horse who happily tackled every jump–even obstacles that the warmblood cross with us refused. He never quit, and never misbehaved. He hunts regularly and happily bumps along in company–quite content to move with the pack, loving every minute of it.
My OTTB has been ridden by beginners and advanced riders, and in the words of my coach “she is as much horse as you ask her to be”. She knows just how much her rider can handle, and she is careful.
When I tell people that I meet that she is an ex-racer, I am often met with surprise–and puzzlement. I think that people are expecting my “crazy Thoroughbred” to be dancing on her toes and breathing fire.
I know that I am not alone in adoring my OTTB. I invite you to share YOUR story of versatility, heart and partnership.
Just a quick post to note that our intrepid volunteer Jeff hopped on Anastasia K on Friday night (her first time back in tack since leaving Suffolk in the fall).
She was terrific! Sane, happy to have a job and unbothered by all of the other horses in surrounding paddocks going in for dinner. A pretty bay with an engaging personality, we are hoping to find her a home as a pleasure horse where she can have that intelligence cultivated and amuse a new owner with her expressive nature.
Writer Colin DeVries in the Hudson-Catskill Newspapers writes:
CATSKILL — Former thoroughbred horse breeder Ernest Paragallo has been given the maximum sentence of two years in jail and a $33,000 fine Tuesday after 33 thoroughbreds on his Center Brook Farm in Climax were found starved and neglected.
At least this is some measure of justice; many of you have seen pictures and video of the shocking story–scores of horses near death from neglect, and for some the rescue came too late.
“Paragallo’s attorney Michael Howard was shocked by the court’s sentence, particularly because Paragallo is a first-time offender.
I can’t fathom a two-year sentence for a first-time offender,” Howard said. “It’s pretty shocking.”
What’s Your Opinion: Fair Sentence? Not Nearly Punishment Enough? Or “Shocking and Unfathomable”, as Mr. Howard seems to think?
This is a post from Kim Rigolini, CANTER New England’s Horse Welfare Coordinator. Kim has spent many, many hours helping Annie make the transition from race horse to riding horse and we’re grateful for her dedication…
She came onto the track as Anastasia K. She was destined for great things! If you look at her pedigree, she traces back to some of the greats…on her dam’s side is Northern Dancer and Raise A Native. On her sire’s side you’ll find Storm Cat, Terlingua and the immortal Secretariat.
A dark bay/brown mare foaled on April 16, 2005 in Kentucky she started 14 times, all unplaced.
Like so many other TB’s that don’t get to move on to the likes of Santa Anita or Saratoga, we found her at Suffolk Downs at the end of the 2009 live racing meet in need of a new job. Her trainer simply couldn’t afford to keep her on over the winter and needed to move her out immediately.
Enter CANTER New England and the generosity of people like Ellen Manley at Churchill Stables who for the past few months has opened up her heart and her “home” to this beautiful girl looking for a new job.
When she first arrived at Churchill, she was underweight and in desperate need of some TLC. Along the way, she’s overcome many obstacles and proven to be quite a resilient mare. To look at her today, you would never imagine she is the same horse that arrived just a few short months ago.
I have had the distinct pleasure of spending quite a bit of time with her and after much debate we’ve
She's a Gorgeous Mover!
decided to call her “Annie”. To me, her name is almost ironic. I remember loving the play about “Little Orphan Annie” when I was a young girl and I can remember belting out the tunes over and over…It’s A Hard Knock Life, Maybe and of course Tomorrow.
When I think about the lyrics to these songs today, I cannot help but think about my own ‘orphan Annie’. She’s had enough hard knocks for a lifetime and she is looking for her own “forever” home.
While I would love nothing more than to keep her for my own, it wouldn’t be fair to her because I cannot dedicate the time needed for her to fully flourish. Annie needs someone who will give her the time and education that she wants and needs.
She has become a very loving and kind mare once she learns that she can trust you. One of the most joyous things for me when I’m with her is after we’ve walked around and grazed a little and I take her in to groom her; she puts her face right on my shoulder and just rests there as if the weight of the world has been lifted. I’ve made a promise to Annie “the sun will come out tomorrow” for her.
Although she hasn’t been worked under saddle much we are starting her on the lunge line and the results are what I exactly what I expected…outstanding. As of today, she’s up to 1,033 pounds and is standing at roughly 15.3 hands. Of course, it’s unknown what her full potential may be but I can tell you that she’s willing to give all she has to you once you give her all you have.