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riderinthestorm

(23,272 posts)

88. You don't compete for money in dresssage. Their "business" model presumably revolves around sales

Tue Jun 19, 2012, 10:44 PM

Jun 2012

lessons and training.

And yes, you get quite a few years of running it on a loss before you have to show a profit. I just asked my husband if he knew the exact numbers (I believe its 6 years of running the biz with a loss before you have to show a profit for the IRS) but neither of us can remember the exact number since it's not something we have to think about (thank god and knock on wood).

Competition costs are akin to advertising for a horse business. Its the place where the barn showcases their rider/trainer (brings in clients for lessons/sales), showcases their horses in training or for sales (ka-ching), showcases the level of care they give the horses (brings in clients for boarding), showcases a sponsor's products if the rider/horse are sponsored.... You really never recoup competition costs with winning but it brings in larger intangible benefits that are magnitudes better.

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Romney family�s dressage horse-related tax deductions last year exceeded median USA household income [View all] kpete Jun 2012 OP

Here's a stat that needs to be seen far and wide... Cooley Hurd Jun 2012 #1

All the wealthy people I know are anal about this stuff NNN0LHI Jun 2012 #2

There are "non-profit" groups that allow rich folks to write off all kinds of hobbies... rfranklin Jun 2012 #34

In one of my former positions I had to check tax returns for some wealthy individuals Digit Jun 2012 #57

It's true. The more they have, the cheaper they are. nt valerief Jun 2012 #63

I had a wealthy aunt who had a 12-year old Buick Electra 225 that the transmission went out on NNN0LHI Jun 2012 #65

Who knew horse dressage was so expensive? pinboy3niner Jun 2012 #3

That horse looks inebriated. Yo_Mama_Been_Loggin Jun 2012 #36

If you were a horse and somebody dressed you like that... pinboy3niner Jun 2012 #47

Hello *hic* Art_from_Ark Jun 2012 #81

Mr. Ed--another victim of horse dressing... pinboy3niner Jun 2012 #86

how do you deduct a 'hobby' ???? spanone Jun 2012 #4

They must be running their hobby as a business aint_no_life_nowhere Jun 2012 #13

I'm sure the horse operation is a business for the rMoneys. riderinthestorm Jun 2012 #15

It may be a business or a hobby slackmaster Jun 2012 #78

Not exactly. The IRS definitions of hobby and business are not terribly hard to understand. slackmaster Jun 2012 #76

Don't know. Yo_Mama_Been_Loggin Jun 2012 #38

Great question. nt valerief Jun 2012 #64

Assuming that each of the owners claimed an equal amount of loss, that means Arkansas Granny Jun 2012 #5

As a pro in the dressage biz, I'd be VERY interested in seeing their tax returns on this riderinthestorm Jun 2012 #6

Wouldn't surprise me that they only paid $1,000 on a dressage saddle NNN0LHI Jun 2012 #11

You can't buy these retail. The saddler flies out and creates it for the horse and rider riderinthestorm Jun 2012 #16

I agree that you and I can't buy these retail NNN0LHI Jun 2012 #23

Oh I've seen it too but the saddle thing is a long shot riderinthestorm Jun 2012 #29

It doesn't have to be a kid wanting to break into the hobby NNN0LHI Jun 2012 #31

I'm going to agree with rider...those saddles are custom and extremely expensive. AllyCat Jun 2012 #42

Bearing in mind the expenses were split 3 ways... OVERPAID01 Jun 2012 #61

Oh its a dressage saddle. Ann's a dressage queen of the highest order riderinthestorm Jun 2012 #85

I'm a "dressage rider" too cilla4progress Jun 2012 #68

Know that feeling. AllyCat Jun 2012 #74

same same! cilla4progress Jun 2012 #84

They get DEDUCTIONS for their horse hobbies? annabanana Jun 2012 #7

Which form can you claim deductions on dressage? Rosa Luxemburg Jun 2012 #54

If you run dressage as a business, it goes on Form 1040 Schedule C jmowreader Jun 2012 #55

I thought it was a sport? Rosa Luxemburg Jun 2012 #56

You can compete for money. antigone382 Jun 2012 #73

remember the days when the Olympics was for AMATEURS? AllyCat Jun 2012 #75

You don't compete for money in dresssage. Their "business" model presumably revolves around sales riderinthestorm Jun 2012 #88

Thanks for the clarification. antigone382 Jun 2012 #89

Schedule A, line 23 if it's a hobby. Schedule C if it's a business. slackmaster Jun 2012 #83

He And His Family Are Just Practicing Their Lordship Skills - It's In The Memo cantbeserious Jun 2012 #8

No wonder he's balking on showing his tax returns Frustratedlady Jun 2012 #9

I've been audited 3 times in 25 years. Horse businesses are targeted by the IRS riderinthestorm Jun 2012 #10

Almost sounds like the competitions are set up deliberately to provide a tax shelter. malthaussen Jun 2012 #18

I think that you are on to something Tom Ripley Jun 2012 #19

I can only tell you from my experience. The competitions we've run have made money riderinthestorm Jun 2012 #22

I have a friend working around the business malthaussen Jun 2012 #28

we had family friends that used their race horse hobby as a tax shelter magical thyme Jun 2012 #49

No matter what the topic on DU eridani Jun 2012 #59

I've never looked into Anne's horse activities but I suppose selling a horse or two could help. bklyncowgirl Jun 2012 #60

Business as usual. lonestarnot Jun 2012 #24

Post removed Post removed Jun 2012 #25

I'm thinking Rafalca's going to get a lot of media attention at the Olympics this year. tanyev Jun 2012 #12

K & R Scurrilous Jun 2012 #14

as a kid, I watched a number of Olympics hfojvt Jun 2012 #17

FRH means he's a registered Hanoverian sporthorse. Its a breed association. riderinthestorm Jun 2012 #26

A tax deduction rks306 Jun 2012 #20

But he's a job creator GeorgeWW3 Jun 2012 #21

Honestly, looking into his Mexican labor force for his horses IS probably a sure fire thing riderinthestorm Jun 2012 #27

A BIG THANK YOU Bohunk68 Jun 2012 #33

Highly unlikely OVERPAID01 Jun 2012 #62

Please send this point to someone who can look it up... uponit7771 Jun 2012 #71

Hey cool, I should be able to deduct my videogames. Marr Jun 2012 #30

1000 recs. SO out of touch. Rose Siding Jun 2012 #32

But think of all the jobs created. Yo_Mama_Been_Loggin Jun 2012 #35

I had thought you couldn't take deductions for hobbies! treestar Jun 2012 #37

Here's a copy of the full text of the Romney 203 page tax return aint_no_life_nowhere Jun 2012 #39

Well, someone had to be paid to dress them. LOL n/t Bonhomme Richard Jun 2012 #40

Wow. I'd like to see that number spread far and wide. fishwax Jun 2012 #41

There's some misunderstanding about this All-American sport. If you're thinking of dimbear Jun 2012 #43

I find it disgusting to live in a world that allows this kind of thing. nt Comrade_McKenzie Jun 2012 #44

Hmm I'd better start to itemize my hobbies too nadinbrzezinski Jun 2012 #45

I know artists who Mz Pip Jun 2012 #46

You might be able to deduct your expenses Retrograde Jun 2012 #52

I think the average lifespan of a horse is 25-30 years Buns_of_Fire Jun 2012 #48

Fancy Horse Steppin' is an Olympic event and Fancy Pageant Walkin' ISNT? Buns_of_Fire Jun 2012 #50

so i can take off loses for my pet dogs too? NMDemDist2 Jun 2012 #51

I didn't think hobbies were tax deductible. n/t BlueToTheBone Jun 2012 #53

Since when do you get a tax deduction for owning a horse?! Rhiannon12866 Jun 2012 #58

Here's how. Have your trainer sell a lame horse to some sucker for six figures. NYT bklyncowgirl Jun 2012 #66

The Romneys have been pulling variations on that scam for a long time. LeftyMom Jun 2012 #77

Isn't this basically a hobby? Would a regular person without fancy tax lawyers be able to write off yellowcanine Jun 2012 #67

Prince Romney requires dressage horses, car elevators and many other things KurtNYC Jun 2012 #70

Unless it was a very expensive hobby it probably wouldn't be worth the trouble. LeftyMom Jun 2012 #80

Wow gaspee Jun 2012 #69

He got a bigger deduction for a hobby horse than most people are paid for their work in a year. n/t jtuck004 Jun 2012 #72

That factoid puts things into perspective slackmaster Jun 2012 #79

In -some- conversations I try to look for opportunities like that. Hard to open a window into a mind jtuck004 Jun 2012 #82

K & R lonestarnot Jun 2012 #87