Are you interested in owning that high-dollar breeding stallion but just can’t quite justify the initial investment? Although you own a few nice mares, do you wonder how you will secure the remaining thirty to forty additional breedings necessary to recoup costs in an average season? Do you know other business associates who have expressed an interest in the stallion but are unable to actually purchase the stud? If so, you might be a good candidate to utilize a syndication agreement. (more…)
Tax Exempt Organizations Can Pay Tax
Many tax-exempt organizations assume that their tax-exempt status eliminates the potential for tax on all forms of income they may generate. Exempt organizations beware. Activities you are involved in may be identified by the Internal Revenue Service as unrelated business taxable income (UBTI) which is subject to tax. (more…)
Disclosure Requirements in a Horse Sale
Horses sell every day, but when it comes right down to it, most people involved in a horse sale are not exactly sure what facts the seller must disclose. The law creates a fine line between a seller’s duty to disclose and a seller’s right to remain silent. The general rules are summarized as follows: (more…)
“So Sue Me . . .” (Just Hope My Liability Waiver Is Working)
I can’t tell you how many times I’ve heard a stable owner tell me “They won’t sue me. They signed a liability waiver”. This statement reflects a misconception prevalent in the horse industry – that a liability waiver will prevent lawsuits from being filed. Nothing could be further from the truth. In fact, many stable owners are currently using standard form liability waivers drafted in such broad, generic terms as to be virtually unenforceable in the event a lawsuit gets filed. How can this be? (more…)