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Equine Tax Parity Act Introduced

posted by Horse Owner Today    |   March 22, 2013 13:57


 
On March 6, 2012, Congressman Andy Barr (R-KY) introduced the Equine Tax Parity Act (H.R. 998), which would make horses eligible for capital gains treatment after 12 months, rather than 24, similar to other business assets.
 
Under the current federal tax code, gains from sales by individuals of property used in a trade or business, including horses, qualify for long-term capital gains and are subject to the maximum capital gains tax rate of 15% for taxpayers earning less than $450,000 or 20% for those earning more.  Since the individual tax rate can go as high as 39.6%, the lower rate is a real advantage. 
 
“Horses held for breeding, racing, showing or draft purposes qualify for the capital gains rates only if they are held for 24 months.  All other business assets (except cattle) qualify if held for 12 months,” Said AHC president Jay Hickey.  “We believe this is unfair to the horse industry and there is no reason why we should not be treated the same as all other businesses.” 
 
The Equine Tax Parity Act would end this discriminatory treatment of horses under the tax code and allow horse owners to enjoy the reduced rate upon sale after holding a horse for 12 months.  For most owners and breeders shortening the capital gains holding period to 12 should be a benefit.  Reducing the holding period by half would give many horse owners and breeders more flexibility to sell and market their horses.  It would mean that every sale of a horse which is held for at least 12 months will qualify as a capital gain or loss unless that horse is held primarily for sale.  
 
“We appreciate Congressman Barr introducing this legislation and highlighting this unfair tax treatment of horses, we will work with the Congressman to get it passed,” said Hickey.
 
Link to article on AHC website

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The Future is in Your Hands – Take the Reins!

posted by Horse Owner Today    |   April 3, 2012 18:54

 

The Future is in Your Hands – Take the Reins!

What You Can Do to Give Strength to the Horse Industry

 

You may be surprised to know that there are over 9 million horses in the United States, based on a study done by the American Horse Council entitled the Economic Impact of the Horse Industry on the United States.

 

The American Horse Council (AHC) is the only organization that represents every segment of that vast horse population.  Every day, the AHC communicates with Congress and other federal agencies to ensure that each understands the economic, agricultural, sporting, and recreational importance of the horse industry. 

 

This can be tedious work, but without open lines of communication with our leaders in Washington, D.C. we could lose the ability to enjoy our horses and our work in the industry that we love.  We hope that our efforts ensure that these federal officials will support a legislative and regulatory structure for the horse industry that encourages individuals and other entities to support and participate in the horse industry, to invest in our horses, and to sponsor and support our events and activities. 

 

The AHC believes that the more opportunities there are to use horses in various activities, the better the overall health of the industry and those who participate. Our goal is to keep opportunities open so that EVERYONE in the horse industry is able to thrive.

 

Because we are a not-for-profit organization, we depend on you – a person who is devoted to your horse and to your sport – to help us stand up for our rights as horse enthusiasts.  Join the American Horse Council today and help us to help you, your horse, your sport, and your industry! 

 

It is extremely important for everyone in the horse community to present a unified front and show Congress and other federal agencies that the horse industry is not only important to their constituents, but is also a large, economically diverse industry that provides hundreds of thousands of US jobs and billions of dollars in tax revenue.  The AHC is the only Washington, D.C. based organization solely dedicated to representing all horses, equestrians, and every segment of the diverse horse community and industry. 

 

The AHC provides many updates on important issues affecting the industry, and explains to its members how they can contact their elected officials to speak up about these issues.  By joining the AHC, you give strength to the horse industry’s voice

 

To learn more about supporting the AHC and becoming a member today visit www.horsecouncil.org/ahc-memberships.