Whether horses are a hobby or your livelihood, each transaction deserves the same level of care as any business decision. Consider costs, risks, potential for growth and security prior to assigning any asset or embarking on a new investment.
Equine Law ServiceS
Erin is experienced in litigation, lease and sales negotiation, contract drafting, insurance, pre-purchase evaluations and planning as well as business formation and tax cases. As such, she is a successful advocate for members of the equestrian community. Services include all areas of the equine industry; from stallion syndications for racehorses, to property and zoning issues, she provides honest and efficient feedback to assess your legal issues.
Erin represents both plaintiffs and defendants in various horse-related lawsuits, ranging from horse sale disputes, trainers with clients who have failed to pay board, hobby loss and passive loss tax cases to equine veterinary malpractice cases.
Erin represents horse-related business in IRS disputes called “hobby loss” and “469” cases. Often times, the IRS will deem a horse business to be a hobby, not operating for-profit and request back taxes from the taxpayer for deducted losses. To defend such a claim, an equine tax attorney will prepare a thorough account of the business transactions from the years in issue to show that the equine activity was in fact, operating for-profit. In recent years, the audit report from the Treasury Inspector General for Tax Administration (TIGTA) of the Internal Revenue Service (IRS) has show a spike in the amount of audits addressing taxpayers who take business tax deductions for activities not engaged in for profit. In these cases, the IRS will request proof that an equine professional has materially participated in the equine activity to justify previous year tax deductions. To help mitigate the risk of IRS audits, carefully file your taxes and keep current and accurate records of all business transactions.