40 Horse Business Tax Deductions You Need To Know About

By Joanne Verikios, Author, Speaker, Mentor

Here in Australia it's nearly the end of the financial year (30 June) and EOFY sales and hype are in full swing everywhere.

It reminds me that, during all the years I ran the Highborn Warmblood Stud, one of my most important team members never set foot on the property and never touched a horse. Who was he? He was (and still is) my accountant.
 
Every year I would have a meeting with him and also provide him with updated records about the business of the stud. These included horses purchased, horses sold, natural increase (ie, foals born) and, sadly, sometimes, losses through death or euthanasia. Other records included feed, veterinary, farrier and dentist bills, vehicle running expenses, pumps, generators and other equipment, fencing repairs and the like. I was buying hay by the semi-trailer load and oats by the tonne, so the expenses were significant. I kept track of every cent and dollar that went out and came in and I was grateful for the income tax refunds I received.
 
The reason I was able to claim tax deductions was because I was recognised by the Australian Taxation Office (ATO) as running a legitimate horse-related business. The government provides incentives to business people and wants those who qualify to take advantage of legitimate deductions - it's a beautiful thing. I was also registered as a primary producer, which provided some concessions such as cheaper vehicle registration.
 
If you run a legitimate business - as distinct from an expensive hobby - I hope the 40 possible deductions and depreciations in my handy reference document will help you to reap a bigger tax return (to fund your horsey passion, of course!). You will need records, receipts or bank statements as proof of your expenditure.
 
Disclaimer: I do not hold a financial services licence and these brief notes do not constitute taxation or financial advice. You are responsible for consulting with your own professional taxation advisors about specific tax circumstances for yourself and your business. Please verify all information with your own accountant in the context of your own circumstances.
 
Every business is different, so the deductions you may claim will be different as well. Ask your accountant about whether you may be able to claim any or all or a proportion of the possible tax deductions I have listed for you. He or she may be able to suggest others - bonus!
 
Click here to download Tax Deductions For Horse Businesses.

What are you going to do differently in the new financial year?