Like any other business, horse boarding has expenses that can be written off against income. To be declared a business and not a hobby you need to keep accurate records and prove that you are legitimately in business to make a profit. Keep receipts to back up your claims and get signed contracts from your tenants.
Expendables
These expenses include anything you use to run your horse boarding business such as feed, bedding, fly spray, gasoline, food additives and office supplies. Deductions for personal use are permitted only in business-related circumstances: for instance, you use your horse to give lessons or for breeding with the intent to sell the foal and make a profit.
Legal and Professional Services
You may enlist the services of an accountant or a lawyer, but if you use your horses to give lessons or for breeding the list doesn't end there. The professional services of a veterinarian, farrier, equine dentist or masseuse are legitimate write-offs.
Repairs and Maintainance
The cost of repairing an item that breaks is a legitimate write-off. This includes machinery such as a tractor, as well as fixed assets such as fencing and plumbing. Repairs to a vehicle used as part of the business can also be written off.
Travel Expenses
Are you transporting horses or equipment to another farm or to a horse show that requires overnight accommodations? These expenses can be written off. Keep accurate records of everything you spend money on, including, fuel, tolls, hotel expenses and meals.
Depreciation
Depreciation is calculated on the cost of equipment used to maintain your property, as well as fixed assets such as a barn or other buildings, fencing and other improvements to your property. Keep accurate records of purchases and written proof such as receipts.
Utilities
If you live on the property, the portion of the utility bills your business incurs can be written off against income. These include electricity, water, sewer, garbage disposal, telephone and internet charges.
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