Did You Know Tim Mahoney (FL-16 D) Is A Horse Rancher?
Tim Mahoney (D) who wants to go to Congress to represent Florida-16 likes to tout the following on his website along with pictures of him and his horse:
As a father, rancher and business owner, I have spent my life solving tough problems and creating jobs with a future for all Americans.
Just like Tim Mahoney, my civilian profession is closely intertwined with the “financial services industry” and I got a belly laugh that he was touting his ranch. Do you know why?
UNIQUE TAX BENEFITS OF HORSE OWNERSHIP
by Stephen A. Drake, Ph.D., CPA and CFPIntroduction
Have you ever thought about the unique tax benefits available to horse ownership? The industry has many tax benefits that other industries can only dream about. There are likely many reasons why the horse industry has these benefits. We know that agriculture was the industry that founded this country and for many years the US was an agrarian society. This is changing but the roots of agriculture still are very important in our society, The American Horse Council estimates that the equine industry adds $112.1B in total impact to the overall US economy. Because of this, as well as lobbying efforts by the equine industry, preferred tax benefits are part of the advantages of being in the horse business.
OVERVIEW OF THE TAX BENEFITS AVAILABLE TO THE HORSEMAN
Hobby Losses
In most industries, the IRS considers a business to be a hobby unless it makes a profit in 3 out of 5 years of operation. The rule for horses, is 2 years out of 7 years of operation to show a profit.
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Guys in the financial services industry become “horse ranchers” for one reason.
As soon as it is official, Joe Negron who is an “average Joe” needs to release his tax records and goad Tim Mahoney (D) into doing the same.
– Oak Leaf