Teresa Genaro is a writer and contributor for Forbes magazine. She’s someone ShowHorse.Co is keeping an eye on to keep informed. Here’s a quote from her article: 2013 Brings Unexpected Tax Relief For Horse Owners.
“What was supposed to happen in 2013,” said Joe Bacigalupo, director of member development for the National Thoroughbred Racing Association, “was that the bonus depreciation for 2012, which was set at a 50% schedule, would disappear entirely. The passage of the American Taxpayer Relief Act extended it for 2013.
“There’s a significant improvement between what was expected to happen and what actually happened.”
According to an NTRA release, the bonus depreciation on purchases of race horses was reinstated at 50%, which was the 2012 rate. The expense allowance was increased to $500,000 for this year and retroactively increased from $125,000 to $500,000 for horses purchased in 2012.