US lawmaker seeks to improve tax status of horses

The American Horse Council has welcomed a force to better the capital-gains handling of horses.

Congressman Andy Barr (R-KY) introduced the Equine Tax Parity Act (H.R. 998), which would brand horses eligible for uppercase gains handling afterward 12 months, rather than 24, like to other trouble organization assets.

Under the electrical flow federal revenue enhancement code, gains from sales yesteryear individuals of holding used inwards a merchandise or business, including horses, qualify for long-term uppercase gains together with are dependent plain to the maximum uppercase gains revenue enhancement charge per unit of measurement of xv per cent for taxpayers earning less than $US450,000 or xx per cent for those earning more. Since the private revenue enhancement charge per unit of measurement tin become every bit high every bit 39.6 per cent, the lower charge per unit of measurement is a existent advantage.

“Horses held for breeding, racing, showing or draft purposes qualify for the uppercase gains rates exclusively if they are held for 24 months.

“All other trouble organization assets, except cattle, qualify if held for 12 months,” council president Jay Hickey.

“We believe this is unfair to the Equus caballus manufacture together with in that location is no argue why nosotros should non last treated the same every bit all other businesses.”

The Equine Tax Parity Act would halt this discriminatory handling of horses nether the revenue enhancement code together with let Equus caballus owners to taste the reduced charge per unit of measurement upon sale afterward holding a Equus caballus for 12 months.

For well-nigh owners together with breeders shortening the uppercase gains holding menstruum to 12 months should last a benefit.

Reducing the holding menstruum yesteryear one-half would give many Equus caballus owners together with breeders to a greater extent than flexibility to sell together with marketplace their horses. It would hateful that every sale of a Equus caballus which is held for at to the lowest degree 12 months volition qualify every bit a uppercase gain or loss unless that Equus caballus is held primarily for sale.

“We appreciate Congressman Barr introducing this legislation together with highlighting this unfair revenue enhancement handling of horses, nosotros volition function amongst the Congressman to larn it passed,” Hickey said.

 

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