Picture of a pony and small child. Child looks excited to ride. Holiday gift-giving and tax deduction tips.

Holiday gift-giving and tax deduction tips in 2023

Things to Know Before You Donate: Holiday gift-giving and tax deduction tips in 2023
By: Brigid Shea,  American Horse Council 

We’re moving into the holiday gift giving season to be followed shortly by the tax season. One season is fun. The other? Not so much. However, each season holds opportunities for everyone. Whether you’re searching for last-minute tax deductions for 2023, or just feeling charitable with the holiday season, the American Horse Council (AHC) shares some holiday gift-giving and tax deduction tips in 2023.

Rehoming or Gifting of Personal Horses

Are you thinking about rehoming a horse, whether for a second or third career, via donation to a school or therapeutic program?

You can earn a tax deduction, while helping a new generation of riders, by donating a horse to a qualified charitable organization. Many schools with equestrian programs and therapeutic riding organizations rely on donations of horses for their programs. The decision to donate your horse to a charitable organization can be rewarding for you, your horse, and the charity. The AHC recommends you vet out the programs you’re looking to donate by making personal visits and discussing with other horse owners who have done the same.  

Financial Donations or Contributions

Year-end donations and celebrations of Giving Tuesday will see many nonprofits asking followers on social media for donations to help fulfill needs that funding lacks. According to Charles Schwab, charitable deductions can reduce your taxable income, if you itemize your taxes. However, overall deductions for donations are usually limited to 50% of your adjusted gross income (AGI). 

What’s in the Works  

The U.S. government is working to help horse owners with their potential income and year-end taxes. There is hope for the adoption of legislation introduced by Representative Andy Barr (R-KY-6) and Congressman McGarvey (D-KY-3) to incentivize investment in the horse racing industry. The Race Horse Cost Recovery Act of 2023 would make the three-year depreciation schedule permanent for racehorses, regardless of their age when put into service. Currently, Congress must reauthorize this provision in the tax law on an annual basis. Their other bill, the Racehorse Tax Parity Act, would reduce the holding period for equine assets to be considered long-term capital gains. This puts them on a level playing field with other similar assets. 

 

Regardless of the scenario, it is crucial to understand and apply the Internal Revenue Service’s (IRS) requirements and guidelines: 

Tips for Donations

For a charitable donation of a horse, make sure you are donating to a qualified charity. To check the status of a charity, use the IRS’s Tax Exempt Organization Search tool. Then determine the fair market value of your horse. Taxpayers seeking a deduction of more than $500 must also complete and file with their tax return IRS Form 8283.  

 

Form 8283 requires the taxpayer to disclose:  

  1. 1. how the horse was acquired,
  2. 2. the date of acquisition (approximate), and 
  3. 3. the cost basis of the horse. 

 

In addition, if the deduction is greater than $5,000, the taxpayer must obtain a written appraisal by a qualified appraiser. (The IRS has requirements as to the qualifications of the appraiser and the timing of the evaluation.) 

 

Looking to maximize your tax deduction? The horse must be used by the receiving charity in connection with the charitable purpose for which it was formed. If a horse is donated to a charity that, in turn, uses the horse in a manner unrelated to its charitable purpose, (for example, selling for cash) then the donor taxpayer can deduct only their basis in the horse, which is usually the purchase price, less any depreciation. (The basis in a homebred horse would be zero.)  

 

Always establish a paper trail.  

Keep records of:  

  • Name and address of the charity,  
  • Date of the donation,  
  • Location of the donation,  
  • A description of the horse in detail reasonably sufficient under the circumstances,  
  • The fair market value of the horse at the time of donation, and  
  • The method used to determine the value, including a written and signed appraisal, if used or required,  
  • And the terms of agreement relating to the horse’s use or disposition. 

 

Request a written receipt. Ask the charity for a tax receipt if the horse is worth more than $250, but less than $5,000. The document receipt must include a description of the horse, a statement concerning whether any goods or services were provided to the donor by the charity in exchange for, in whole or part, the horse, and a description and good faith estimate of any value or services given by the charity in exchange for the horse.  

 

Do the math. There are many factors affecting the amount a taxpayer can receive as a deduction. For example, when a horse eligible for capital gain treatment has been depreciated and is donated to a charity, the amount of the gift is the value of the horse reduced by the amount of depreciation that has been taken. Section 170(e) of the Internal Revenue Code lists these exceptions, including horses eligible for capital gains treatment and a donation to a charity that does not relate to the charity’s exempt purpose. Another important rule to keep in mind is the horse must have been held by the donor for 24 months for sporting, breeding, or draft purposes prior to gifting it to maximize benefit to the taxpayer. You can see the rules on depreciation here. Tax guidance specific to farm and agriculture can be accessed at this site. 

 

The American Horse Council strongly recommends consulting with a qualified tax professional. This commentary is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice. 

The AHC has several tax professionals as members who would be happy to assist with any tax questions on all aspects of horse ownership. Please contact info@horsecouncil.org for a listing.  

For more information about the American Horse Council.  Check out www.horsecouncil.org

For more information about the United Horse Coalition:  Check out www.unitedhorsecoalition.org.

 

2023 National Economic Impact Study Results Update 

2023 National Economic Impact Study Results Update 

Over the course of its 50-plus year history, the American Horse Council has conducted numerous national economic impact studies for the U.S. horse industry, which has included such pivotal years as 1987, 1997, 2007 and, the most recent study, 2017. “The challenges of the last few years with the pandemic and its economic impacts on all aspects of our industry make the 2023 study all that more important and necessary,” states Dr. Rick Mitchell, Chairman of the AHC Board. 

Data collected will inform public and private investments in equine-related businesses, equine health care, education, land use decisions, tax policy, tourism, employment incentives, etc.  

Horse Owner and Supplier surveys launched April 3 and remained open till September 29, 2023. Twenty specialty surveys were also deployed including racing, equine-assisted services, academia, import/export, rescues, associations, show organizers, mounted police, polo, and federal Government partnerships including the Bureau of Land Management, National Forestry Service and United States Postal Service.  Specialty surveys closed October 15, 2023. 

The AHC anticipates the final results to be received in late December 2023 or early January 2024.  

These reports include: the national study as well as the specially targeted state studies for California, Florida, Maryland, New York, North Carolina and Texas. Community Reports include Long Island New York; Marion County, Florida and Jacksboro, Texas. 

The United States Trotting Association also commissioned a Standardbred racing report that includes all harness racing tracks.  

For more information and the 2023 Economic Impact Study can be found on the AHC website:

https://horsecouncil.org/economic-impact-study/  

If you have questions, contact American Horse Council President Julie Broadway at jbroadway@horsecouncil.org 

About the American Horse CouncilAs the national association representing all segments of the horse industry in Washington, D.C., the American Horse Council works daily to represent equine interests and opportunities. 

United Horse Coalition Launches Membership Drive Contest

Contact: Megan Arszman
United Horse Coalition

Phone: 202-296-4031
Email: media@horsecouncil.org

FOR IMMEDIATE RELEASE
November 9, 2023

 

United Horse Coalition Launches Membership Drive Contest

 

The end of the year is the perfect time to make a change and make a difference. Why not end the year on a more colorful note while supporting the United Horse Coalition (UHC)?

 

The UHC is hosting their membership drive as a reminder that each organization in our industry, no matter their capacity, or mission, can support horses that are at-risk or in transition. Now through December 14, any new membership with the UHC is eligible to win a little extra something to support their cause.

 

New members (or returning after more than two years) joining as a registered 501c3 rescue or sanctuary at the Non-Profit Membership level, will be entered into win a gift card for $250 from Sherwin Williams.

 

New members (or returning after more than two years) joining at the Full, Associate or Supportive level are eligible to win a $100 gift card from the American Horse Council.

 

“Because the UHC relies solely on our membership fees to continue the work we do, your support through your membership with the United Horse Coalition is critical to ensure the viability of the valuable resources we provide to the equine industry as a whole,” says Ashley Harkins, director of the UHC.

 

The UHC is a neutral entity and broad alliance of equine organizations that have joined together under the American Horse Council to educate, advocate, and collaborate industry wide on solutions to the issues that surround our nations at-risk horses and those in transition. The work that UHC does, ensures that every horse owner has access to the resources they need to keep their horse(s) safe at home should they fall on hard times, or barring that, help provide options to rehome their horse responsibly, ensuring that no horse need be put in a situation where they become at-risk. In addition to these essential resources, the UHC provides free presentations and educational materials to current and prospective equine owners on responsible horse ownership and breeding, estate planning, preparing for euthanasia and aftercare, responsible rehoming options, and more.

 

In supporting the UHC, you support providing resources and responsible options for horse owners who need our help the most, while helping to keep our industry alive and well. Your membership helps to provide resources to horse owners, who may even belong to your own clientele, member base or organization. The resources that UHC offers are free and are critical to ensuring the wellbeing of horses (and their owners) across every discipline throughout the entire equine industry.

The UHC is also home to the UHC Equine Resource Database as well as the Equine Welfare Data Collective–a collaboration that accumulates, analyzes, and reports data to enhance programming for transitioning and at-risk equines. The data found in the EWDC reports help us as an industry to have a better understanding of the true nature of what is really happening out there, not just anecdotally. The work UHC and EWDC accomplish on such a tight budget within the equine industry is no small achievement, and we are proud that the industry looks to, and trusts, the data supplied in these reports. This data is used to drive positive change and help organizations to improve their effectiveness across the industry in an effort to make lasting forward movement for at-risk equines and those in transition. Both the UHC and EWDC utilize the UHCERD in their daily work to help advance their respective missions within the equine industry.

To help us, help the equine industry, and the owners who need our support the most, please consider becoming a United Horse Coalition member organization: https://unitedhorsecoalition.org/become-a-member/

 

The contest is sponsored by the American Horse Council and the United Horse Coalition. No purchase is necessary to enter or win, and all legal residents in the 50 states of the United States and the District of Columbia are eligible.

 

Limit one entry per organization, per email address and per household. The winner will be selected and announced on or about December 16. The UHC will attempt to notify the winner via telephone or email, and if the potential winner cannot be contacted within five business days after the first attempt, the UHC will select an alternate potential winner.

 

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The United Horse Coalition is a broad alliance of equine organizations that have joined together under the American Horse Council to educate the horse industry about the issues facing horses at-risk or in transition. We seek to provide information for existing and prospective owners, breeders, sellers, and horse organizations regarding the long-term responsibilities of owning and caring for horses, as well as focusing on the opportunities available for these horses. Learn more at unitedhorsecoalition.org

 

About the American Horse Council 

As the national association representing all segments of the horse industry in Washington, D.C., the American Horse Council works daily to represent equine interests and opportunities.

 

 

 

American Horse Council Supports California Horse Racing Board Regulation 

American Horse Council Supports California Horse Racing Board Regulation 
 
The American Horse Council (AHC) has issued the following statement in support of the recent action by the California Horse Racing Board to address illegal horse racing.  
 
“The AHC applauds the California Horse Racing Board for adopting a new regulation that bans licensees from participating in illegal, unsanctioned horse racing,” said Julie Broadway, President of AHC. Our organization has been educating state law enforcement and regulators on the dangers of illegal, unsanctioned horse racing for many years since the scope of the issue was brought to our attention. It is encouraging to see progress and we hope other states will act.” 
 
The California Code of Regulations listed a proposed amendment of Rule 1902, Conduct Detrimental to Horse Racing:  
 
No licensee shall engage in any conduct prohibited by this Division nor shall any licensee engage in any conduct which by its nature is detrimental to the best interests of horse racing, including but not limited to:  
 
  • Participation in, or presence at, any non-recognized race meeting where racing occurred 
  • Recognized race meeting is defined pursuant to subsection (u) of Rule 1420 
  • Racing is defined pursuant to subsection (s) of Rule 1402 
“The harm caused to horses at these illegal races is significant,” continued Broadway. “There are numerous documented reports of horses being injured and dying at these races due to injections of illegal and inappropriate substances, abuse, and exhaustion. In addition to the crime of animal cruelty, further harm occurs in the form of disease transmission. The United States Department of Agriculture (USDA) has found that clusters of equine infectious anemia and equine piroplasmosis in racehorses are often associated with unsanctioned racing. These diseases are easily transmitted and can infect working and pleasure horses across the entire United States.  
 
“What is of equal concern are the serious consequences for the health and well-being of humans. Patrons and jockeys are at risk in these unsafe environments because these venues are magnets for additional criminal activity.” 
 
“The AHC will continue to urge states to move more aggressively to shut these tracks down,” Broadway concluded.  
 
The American Horse Council is an advocacy organization based in Washington, D.C., that represents individual members, small businesses, and more than 130 equine organizations before Congress and the federal regulatory agencies. AHC member organizations include breed registries, national and state equine associations, state horse councils, recreational associations, and organizations representing racetracks, equestrians, horse shows, veterinarians, farriers, rodeos, and other equine-related stakeholders. 

AHC Presents Quarterly Webinar: Is My Barn a CAFO? What is a CAFO? 

AHC Presents Quarterly Webinar: Is My Barn a CAFO? What is a CAFO? 

 

If you’re reading the headline and wondering, “What is a CAFO?” right now, you’re not alone! A CAFO is a concentrated animal feeding operation, and it is a hot topic as federal efforts focus on expanding regulatory efforts surrounding environmental sustainability and climate impacts related to agriculture.  

 

The American Horse Council quarterly webinar series is hosting “Is My Barn a CAFO? What is a CAFO?” November 13th  at 1 pm EST. This free webinar will be an opportunity to learn all about Concentrated Animal Feeding Operations (CAFOs) and how they apply to the horse industry.  

 

CAFO permitting is an environmental regulatory process with federal and state level oversight with potential for impact on equine facilities of all sizes across the country. CAFO permitting processes can be confusing to navigate, do CAFO rules apply to your operation? How do you find out? How might these rules impact your facility design and operation? What are potential financial implications associated with compliance? Attend the webinar and find out! 

 

“This webinar is an important step to understanding how to navigate the often-complicated landscape of federal and state regulatory efforts and will give landowners knowledge to better protect both themselves and their operations while promoting the health of their property and their horses in the long run,” says Emily Stearns, AHC Health, Welfare, and Regulatory Affairs Liaison. 

  

To register for the webinar, send an email to info@horsecouncil.org by November 11th, with the subject line “Horse CAFO Webinar.” 

  

SPECIAL ANNOUNCEMENT – Rescheduled Fall 2023 Fly-In

SPECIAL ANNOUNCEMENT – Rescheduled Fall 2023 Fly-In

AHC’s annual Legislative Fly-in is now scheduled to take place during our 2024 National Issues Forum, June 9-12, 2024, at the Royal Sonesta Capitol Hill, 20 Massachusetts Avenue, NW, Washington DC.We are rescheduling the Fall 2023 AHC Fly-In because of uncertainties surrounding congressional events due to the lack of a Speaker in the House of Representatives, looming government shut-down, and delay of the Farm Bill.AHC will facilitate individual meetings with Members of Congress for those who wish to engage prior to our June meeting. Please contact bshea@horsecouncil.orgBe assured AHC is holding meetings during this chaotic period to promote our legislative agenda.

One Week Left for AHC Equine Economic Impact Survey 

One Week Left for AHC Equine Economic Impact Survey 

 

The largest horse industry survey in the nation has hit the countdown for its final days. The American Horse Council’s (AHC) Equine Economic Impact Survey comes to a close on September 29. Horse owners and those involved in supplying the industry with equipment, feed, etc., are strongly encouraged to fill out the survey prior to the close.

 

“This year’s survey is the most in-depth, all-encompassing survey the American Horse Council has done so far,” says Julie Broadway, president of the AHC. “We’ve put a lot of effort into covering as many different facets of the horse industry and hope it becomes a vital tool for the industry as a whole.”

 

An economic impact study examines the effect of an event or industry has on the economy and usually measures changes in business revenue, business profits, personal wages, and/or jobs. As a large, economically diverse industry, the United States horse industry contributes significantly to the American economy.

 

The latest podcast released by the American Horse Council on Horses in the Morning shines the light on the Equine Economic Impact Survey. AHC president Julie Broadway speaks with four industry leaders about how they have used previous surveys to promote and protect the horse industry in their locale to share the importance of participating in the survey.

Data collected will inform public and private investments in equine-related businesses, equine health care, education, land use decisions, tax policy, tourism, employment incentives, etc.

 

Responders to the survey are being rewarded with a coupon to purchase books from Horse N Rider Books, while also becoming eligible for sponsored incentives, which include a John Deere Z545R ZTrak Mower valued at $7500, one year of Nutrena feed for one horse (a $2,000 value); four drawings for one year of Purina feed for one horse (a $500 value/horse); six drawings for gift certificates from Trafalgar Square Books (total value $180); two drawings for enrollment in Texas A&M AgriLife Equine Reproductive Management Online Course valued at $300/enrollment; plus more.

 

Find the 2023 Economic Impact Study on the AHC website: https://horsecouncil.org/economic-impact-study/

 

If you have questions, contact American Horse Council President Julie Broadway at jbroadway@horsecouncil.org

 

American Horse Council Seeks Conference Partner

FOR IMMEDIATE RELEASE

 

American Horse Council

Julie Broadway

Jbroadway@horsecouncil.org

http://horsecouncil.org

 

 

American Horse Council Seeks Conference Partner

 

In an age where costs for travel and everyday living continue to rise, it can make it more difficult for organizations to host in-person conferences and educational opportunities for their members and potential customers. Attendees are looking for bigger bangs for their bucks when it comes to traveling for events such as these. This is why collaboration helps to drive growth when groups come together.

 

It is in this light that the American Horse Council (AHC) is inviting equine and/or agriculture-related organizations that are seeking conference facilities in the Washington, D.C., area in 2024 (or 2025) to reach out and discuss possible collaborations. (Future collaborations beyond 2025 may be discussed at a later date.)

 

The AHC will be holding its 2024 Conference over the course of four days, starting June 9, in its return to Washington, D.C. The conference will be held at the Royal Sonesta Hotel, located at 2121P Street NW, near Capitol Hill.

 

The Royal Sonesta is a brand-new venue which opened to guests last month (August 2023), and thus has flexibility to accommodate multiple groups simultaneously.

 

“The Annual AHC Conference is a huge drawing card for equine industry leaders and stakeholders,” states AHC President Julie Broadway. “We thought it might be fun to partner with another group as a way to cross pollinate ideas, speakers and networking opportunities – which could also be cost advantageous for everyone. Organizers can share the cost, and attendees get two educational opportunities for the cost of one trip!”

 

Contact Julie Broadway at jbroadway@horsecouncil.org to discuss.

 

Equine Industry Survey Overload – What You Need to Know  

Equine Industry Survey Overload – What You Need to Know  

In recent months, several surveys have been circulated regarding the U.S. horse industry.  The American Horse Council (AHC) wishes to clarify these to avoid confusion and misunderstanding of the data collection methodologies, audiences, and findings. While all the surveys collect and publish data regarding the U.S. horse industry, each survey has different target audiences and different definitions.

AHC Equine Economic Impact Survey
The most comprehensive survey comes from the National Economic Impact of the U.S. Horse Industry conducted by the AHC Foundation which surveys all horse owners and stakeholders in the industry. Typically, this study occurs every five years, and is currently underway through September 29, 2023. The data from this survey is completely anonymous. Conducting an economic impact study creates an awareness of and an interest in the equine industry, helps provide positive relationships, including congressional and media relations, identifies local partners and supporters and offers an opportunity to recognize those relationships, identifies the industry as a player in the local, state & national economy and allows the industry to advertise itself by first identifying its contributions. This survey differs from the USDA-sponsored National Agriculture Statistic Service census because of the limitations placed on the USDA census.

Specialty entities that are being collected through this survey include: carriage operators, equine-assisted therapy groups, equines in academia, racetracks and commissions, and more.

You can find the AHC Equine Economic Impact Survey here: https://horsecouncil.org/economic-impact-study/

USDA, National Animal Health Monitoring System
The USDA, National Animal Health Monitoring System (NAHMS) periodically conducts an Equine Needs Assessment Survey to identify key issues and information gaps related to herd health. Currently, NAHMS is doing is in the development stage of the next study and is surveying the equine industry to help shape the study’s objectives. This survey is currently active through October 1, 2023. The full survey will take pace in 2026.

USDA, National Agriculture Statistic Service
The USDA, National Agriculture Statistic Service (NASS) conducts an agriculture census every five years. This census counts only horses that are on working farms. This definition excludes boarding, training, and riding facilities; as well as any other operation that fails to generate a minimum of $1,000 in sales of equine products, defined as “breeding fees, stud fees, semen or other”.  This census misses the majority of the horse population in the United States as well as a majority of the impact horses have on their communities.

PetSource
The American Veterinary Medical Association (AVMA) publishes a report on pets called “PetSource”. While horses are defined as “livestock”, the AVMA study does ask owners about all types of animals in their care and thus publishes the number of horses reported and health/veterinary care issues.

AAEP, Equine Network
The American Association of Equine Practitioners (AAEP) in conjunction with Equine Network publications EquiManagement, The Horse, EQUUS and Horse & Rider just completed a survey of horse owners relating to their experiences with veterinary services and care.

University of Kentucky
Most recently the University of Kentucky has announced an equine health survey for horse owners in the state of Kentucky.

While the number of surveys can seem like overload, it’s important that horse owners and horse-related business owners take the time to complete as many as they can, as each survey can have a positive impact on the equine industry. Having accurate numbers can help support legislation, fund local events and support horses and their owners in a variety of ways.

For more information on the AHC Equine Economic Impact Survey, contact AHC President Julie Broadway: jbroadway@horsecouncil.org.

 

AHC Announces New Emeritus Appointments

Contact: Julie Broadway
American Horse Council

Phone: 202-296-4031
Email: jbroadway@horsecouncil.org

For Immediate Release

AHC Announces New Emeritus Appointments

At the American Horse Council’s most recent board meeting on August 17, 2023, the following former trustees were named as emeritus, joining existing emeriti ranks with Dr. Jerry Black and Dr. G. Marvin Beeman.

  • James L. “Jim” Gagliano – President/COO of The Jockey Club, Jim served on the AHC Board of Trustees for 10 years (2012-2022) including three years as Vice Chair, three years as Chair and one year as Past Chair. Gagliano also served on numerous committees, working groups and task forces during this tenure.
  • Tom Lenz – Dr. Lenz was the AAEP representative on the AHC Board of Trustees for 13 years (2009 – 2022), serving as Welfare committee Chair and United Horse Coalition Chair.
  • Alex Waldrop – Former CEO of National Thoroughbred Racing Association, Alex joined the AHC Board of Trustees in 2006 and served for 15 years, retiring in 2021. During his tenure, Waldrop served as Chair of the AHC Racing Committee, and as Board Treasurer for many years.
  • Glenn Blodgett (posthumously) – Dr. Blodgett joined the AHC Board of Trustees in 2015 as the American Quarter Horse Association representative. He served on the Health & Regulatory Committee, Equine Welfare Committee and Racing Committee. Sadly Dr. Blodget, passed on Nov 20, 2022.

“These distinguished individuals have made invaluable contributions to the success of the Council and the Equine Industry,” stated Dr. Rick Mitchell, current AHC Board Chair. “They brought great insights and were visionaries in expanding AHC’s footprint in Washington, D.C., and firmly establishing AHC as the industry’s unified voice on Capitol Hill. We are indebted to them for their many years of service and countless contributions.”

About the American Horse Council

As the national association representing all segments of the horse industry in Washington, D.C., the American Horse Council works daily to represent equine interests and opportunities.