California Riding Magazine • August, 2008

Navigate Tax Pitfalls
Tax Planning for Horse Owners and Breeders, by B. Paul Husband and Richard W. Craigo.

As the 35 billion dollar per year U.S. horse industry continues breeding, racing and showing horses, horse owners and breeders are faced with a unique set of opportunities and also potential pitfalls which could increase federal and state taxes, resulting in many equine businesses being saddled with a hefty tax bill.

Tax Planning for Horse Owners and Breeders, co-authored by B. Paul Husband, Esq., and Richard W. Craigo, Esq., is a comprehensive new legal guide that navigates horse owners and advisors to better understand the intricate details of the Internal Revenue Service’s (IRS) tax codes and regulations, while helping them to successfully manage their businesses, take advantage of tax incentives, increase revenue stream (net of tax), and protect their most treasured four-
legged assets.

Through fundamental terminology and definitions, and exciting case studies, Tax Planning for Horse Owners and Breeders, takes an in-depth look at the business structure of horse ownership. From nine regulatory tax factors that directly affect horse owners and their finances, to operating a business for profit, including cost and depreciation of assets, expenses, charitable contributions of horses and more, Tax Planning for Horse Owners and Breeders takes the daunting task of deciphering complex IRS codes, dissects them in layman’s terms and gives owners and advisors alike the tools to be better informed in equine income taxation.

Tax Planning for Horse Owners and Breeders retails at $57 and is available for purchase in book or CD format at www.husbandlaw.com. For more information, please call 818-955-8585.

About the Authors

Co-author B. Paul Husband is an equine, tax and entertainment attorney, serving domestic and international clientele from his offices in Southern California. Paul also owns and breeds Arabian horses for both show and racing. He began his esteemed equine law career in 1980 where he syndicated Khemosabi, a four-time national champion Arabian stallion (the all-time leading sire of Arabian foals with 1,250 direct get). Paul has served as an adjunct professor of law at Pepperdine University School of Law in Entertainment Law, has lectured extensively on tax topics including presentations at the American Horse Council and the University of Kentucky’s National Equine Law Conference. In addition, he is a regular contributor to The American Horse Council Tax Bulletin and is a member of their board of Advisors.

Co-author Richard W. Craigo is an equine tax attorney with over 40 years of practice in the service of equine law, including taxation and is a Certified Specialist in Taxation Law (The State Bar of California Board of Legal Specialization). Richard’s distinguished career has led to the success of resolving over 125 disputes on behalf of his clients of all breeds nationwide, with the IRS on “Hobby Loss” and “Passive Loss” challenges. He has served as California president for Horsemen’s Benevolent and Protective Association, an organization representing all California Thoroughbred owners, and has been an owner of Thoroughbreds.