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
EPL’s equine law services include lease and sales negotiation, contract drafting, insurance consultations, pre-purchase evaluations and planning as well as business formation and IRS defense. As a lifelong rider in the hunters and jumpers, Erin is a successful advocate for members of the equestrian community. Services include all areas of the equine industry; from contract disputes, equine liens, stallion syndications for racehorses, to tax litigation and property rights. Erin represents both plaintiffs and defendants in equine law cases, she is an effective mediator and has reached a number of large settlements for her clients. One of the biggest misconceptions in the horse industry is that a fillable form sales agreement will adequately protect the trainer, buyer and seller. EPL is passionate about increasing transparency in horse sales and imports to protect the client from fraud and misrepresentation, the trainer from agency liability and the seller from civil suit.
Erin represents horse-related business in equine tax cases and disputes with the IRS 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.