Are you thinking of taking part in a horse racing partnership or syndicate, or maybe you are an active partner? If so, it is timely to know how to begin matters correctly in order to keep track of your horse racing partnership percentage and be prepared when you have to give an account of your records for yearly tax preparation or other purposes.
If you require the IRS to treat your horse racing partnership activities as a business then you must conduct your dealings in a businesslike fashion. start off on the right foot, before joining any partnership you should have a precise picture of both what you expect and what the syndicate is laying on the table. A business plan can outline what you are looking for in a syndicate and what you anticipate earning from your outlay.
A list of points that need to be included in your horse racing partnership business plan are:
* Where you plan to obtain the money necessary to make both the opening investment in a horse racing partnership and to cover the ongoing monthly consumptions.
* A time frame for the partnership, how long is the undertaking, 1 year, 4 years, etc.
* Means of finding the horse, where will be purchased from, auction, private sale, etc.
* A budget figuring both potential earnings and expenses.
* Define the limits in which the horse racing partnership will function, for example, do you want to race regionally or go national.
* Determine your prospects for insuring your investiture, (i.e. liability and mortality insurance).
* Is there a clause in the contract so you can cancel the horse racing partnership should you choose to do so?
As well as a business plan, you need to know how to establish your business properly and how to account for income and expense. Some things you need to do in order to get your business set up properly include:
* Hire an accountant knowledgeable in the subject of horse racing partnerships.
* Set up a separate checking account for your share of the horse racing partnership and mark it as such for example, John Smith d/b/a Partnership Name, LLC.
* Retain all bills, receipts, check stubs from winnings, etc. that relate to your horse racing partnership activities.
* Begin an appointment book and travel log to document appointments, visits to the racing stable, phone calls, any travel, all associated mileage, etc.
With intelligent planning, you can become involved in the sport of horse racing with defined expectations and organization, which will help you pick out a horse racing partnership more quickly. You will also be set up to keep track of your equine activities in a businesslike way, which will prepare you for tax time. Being prepared forestalls concerns or issues, which will allow you to really relax and relish your thoroughbred horse racing partnership!
During recent years, purchasing a percentage in a thoroughbred racehorse has become more and more popular. The trouble is – where to commence? PartnersInThoroughbreds is a web site committed to horse racing partnerships. All current partnerships and syndicates are included and the News and Features sections embracing listed partnerships are constantly updated. If you’re in any way interested in a racehorse partnership ….
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