Save Now While Saving for Later: Retirement Funds and Year-End Tax Planning

  The new tax law did not change the rules regarding retirement plan contributions and their limits. Taxpayers can still lower their taxable income by making contributions to their retirement savings plans before year-end. The Employee Benefit Research Institute’s 2018 Retirement Confidence Survey indicates that only 32% of retirees are...

Tax Law and the Horse Industry: Part VI, Deducting Horse-Related Business Expenses

Many business owners aren’t aware of many deductions that are available to them and end up paying taxes that otherwise could have been avoided. 26 U.S. Code § 162 allows business owners to deduct “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on...

Tax Law and the Horse Industry: Part V, Taxation of Horse-Related Business Activities Under The New Tax Law

The Tax Cuts and Jobs Act of 2017 (TCJA) has had an impact on nearly every U.S. person and industry, and the equine industry is no exception. Despite its overall shortcomings, the new law contains a number of provisions that can be utilized to your benefit and we have been...

Tax Law and the Horse Industry: Part IV, Proving Active Participation

Before 1986, ingenious tax attorneys and financial advisors created investments for their clients that were purposefully designed to create tax losses that could offset other income. In its attempt to curb the use of these abusive tax shelters, Congress enacted The Tax Reform Act of 1986 (TRA), which included the...

Tax Law and the Horse Industry: Part III, Incorporating your Horse-Related Business

Anyone who runs a horse-related business without incorporating it takes a tremendous risk of losing their home and other personal assets. A riding accident, a horse out of control, a boarder’s slip-and-fall – any of these could jeopardize your home and life savings. Horse-related ventures are generally high risk –...

Reduce Your Tax Bill With Year-End Charitable Giving

There are many reasons that people donate to charities and the charitable giving tax deduction has always been one of them. However, by eliminating many other itemized deductions and increasing the standard deduction, the new tax law has reduced the tax incentive for charitable giving. Many taxpayers feel that they...