Maybe you are giving some consideration to joining a horse racing partnership or syndicate, or possibly you are already actively involved? If either is the case, it's vital you quickly familiarize yourself with how to set up all your records correctly so that you keep a complete track of your share and find yourself fully prepared for tax time or other financial necessities.
If you expect the IRS to view your horse racing venture as a business, you will need to be systematic and professional in your approach. To set off on the right foot, in advance of investing in a partnership, you need to establish positively just what you want to achieve as well as what the syndicate is offering. A business plan should list precisely what you are hoping for in a partnership and what you anticipate happening with your investment. A few important items you should list in your horse racing business plan are:
* Where you plan to obtain the funds necessary to make both the initial investment in a horse racing partnership and to cover the monthly expenditures.
* A best estimate that the partnership's length, the duration of the contract - 1 year, 2 years, etc.
* How will the horse be acquired - will it be purchased at auction or from a private vendor, etc.
* Projected income and operating expenses.
* Define the boundaries in which the partnership will operate, for example, do you want to race regionally or go national.
* Clearly indicate what level of insurance you intend to purchase to cover your risk.
* Is there a clause in the contract so you can get out of the partnership should you choose to do so?
As well as a good business plan, you should also learn how to organize your business correctly, accounting for all income and expenses. Important guidelines you need to follow so that your business runs smoothly are:
* Hire an accountant knowledgeable in the field of horse racing partnerships.
* Set up a checking account and tag it with reference to the partnership, for example, Jeff Sanchez DBA Sanchez Stable, LLC. Use it only for partnership transactions.
* Keep all bills, receipts, check stubs from winnings, etc. that relate to your horse racing partnership activities.
* Establish an engagement book and travel log and carefully record all mileage to and from the track, phone calls, appointments, etc.
With just a little forethought, it's fairly easy to involve yourself in the "Sport of Kings" with specific prospects and arrangements, which will guide you toward selecting the horse racing partnership that's right for you. You will also be set up to record all your tax related activities methodically. Good preparation eliminates issues and headaches, all of which will contribute to your increased enjoyment in your racehorse ownership! - 16887
If you expect the IRS to view your horse racing venture as a business, you will need to be systematic and professional in your approach. To set off on the right foot, in advance of investing in a partnership, you need to establish positively just what you want to achieve as well as what the syndicate is offering. A business plan should list precisely what you are hoping for in a partnership and what you anticipate happening with your investment. A few important items you should list in your horse racing business plan are:
* Where you plan to obtain the funds necessary to make both the initial investment in a horse racing partnership and to cover the monthly expenditures.
* A best estimate that the partnership's length, the duration of the contract - 1 year, 2 years, etc.
* How will the horse be acquired - will it be purchased at auction or from a private vendor, etc.
* Projected income and operating expenses.
* Define the boundaries in which the partnership will operate, for example, do you want to race regionally or go national.
* Clearly indicate what level of insurance you intend to purchase to cover your risk.
* Is there a clause in the contract so you can get out of the partnership should you choose to do so?
As well as a good business plan, you should also learn how to organize your business correctly, accounting for all income and expenses. Important guidelines you need to follow so that your business runs smoothly are:
* Hire an accountant knowledgeable in the field of horse racing partnerships.
* Set up a checking account and tag it with reference to the partnership, for example, Jeff Sanchez DBA Sanchez Stable, LLC. Use it only for partnership transactions.
* Keep all bills, receipts, check stubs from winnings, etc. that relate to your horse racing partnership activities.
* Establish an engagement book and travel log and carefully record all mileage to and from the track, phone calls, appointments, etc.
With just a little forethought, it's fairly easy to involve yourself in the "Sport of Kings" with specific prospects and arrangements, which will guide you toward selecting the horse racing partnership that's right for you. You will also be set up to record all your tax related activities methodically. Good preparation eliminates issues and headaches, all of which will contribute to your increased enjoyment in your racehorse ownership! - 16887
About the Author:
C. Anne Baker's life has included thoroughbred horseracing and breeding for many years. She also contributes to horseracing charities. For a short time, visitors to her web site PartnersInThoroughbreds.com can receive her excellent report Becoming included A horseracing Partnership
No comments:
Post a Comment