Lexington sale

[LUCPARK]

Who can convince the forum that peeps buying these animals actually earned their money?

WHY DOES THIS MATTER TO U ..IM ASKING FOR A FRIEND

[augustaandy]

bonanza looked a lot like maverick only at half the cost
ouch !!
overpaying for siblings will send you to the poor house. especially colts

exactly!!!

[COUNSELOR]

SECTION 179 OF THE IRS CODE GIVES THE PURCHASER THE ABILITY TO EXPENSE 100% OF THE PURCHASE OF THESE YEARLINGS IN THIS YEARS TAX YEAR.   SAY FOR EXAMPLE YOU HAVE A LINE OF CREDIT----YOU USE ZERO CASH---WRITE A CHECK FOR $1,050,000----IN ESSENCE ZERO OUT OF POCKET AND YOU DEDUCT $1,050,000 FORM YOU INCOME AS AN EXPENSE---DOES THIS HELP HIGH WAGE EARNERS?   I THINK SO.

THEREFORE, WHEN YOU SEE NEW PURCHASERS OF YEALRLINGS THINK ABOUT THE RISK----VERY LITTLE IF ANY SINCE THE SECTION 179 PERMITS EXPENSING ON DAY OF PURCHASE.  FURTHER, RECALL THIS EXPENSE TAKEN CAN OFFSET YOUR INCOME FROM OTHER SOURCES SUCH AS W-2 INCOME. 

THEREFORE, WE CAN EXPENSE UP TO $1,050,000 IN 2021 ON ANY HORSE PURCHASE----OFFSET INCOME WITH THAT FROM OTHER SOURCES 9 EITHER BUSINESS OR PERSONAL) AND IN ESSENCE GET A TAX REFUND FOR BUYING YEARLINGS!

HIGH INCOME FOLKS ARE GETTING TAX ADVICE FROM THEIR ATTORNEYS AND IT IS GOOD ADVICE.   THEY HAVE LIMITED RISK!!!

HOPE THIS HELPS YOU UNDERSTAND THE LEXINGTON PRICES!!!

MANY HORSEMAN DO NOT UNDERSTAND THESE TAX RULES SO I WOULD RECOMMEND A TAX ADVISOR SO YOU CAN TAKE ADVANTANGE OF THESE WRITEOFFS.  MANY ARE NOT AWARE THAT HORSES ARE CLASSIFIED AS EQUIPMENT AND ARE ELIGIBLE TO SECTION 179.

[MR.DALRAE]

WHY DOES THIS MATTER TO U ..IM ASKING FOR A FRIEND

YOU HAVE ANY FRIENDS BESIDE HE,,,,AND IM NOT AXXING

[COUNSELOR]

SECTION 179 APPLIES TO ALL PURCHASES.....WHE THER IT IS $1 DOLLAR OR UP TO $1,050,000.  PERIOD.   

THE INVESTMENT OFFSETS ORDINARY INCOME UP TO $1,050,000.   IF YOU PURCHASE A HORSE AND FINANCE IT WITH $1 DOWN AND PAYMENTS OVER 3 YEARS YOU CAN STILL EXPENSE THE ENTIRE PURCHASE EVEN IF YOU ONLY PUT $1 DOWN.

YOU DO NOT HAVE TO BE RICH---FOR THIS TO BENEFIT.

AS A SIDE NOTE MY FATHER WAS A TRUCK DRIVER AND GOD REST HIS SOUL PASSED AWAY IN 1973!!!!  THEREFORE, I HAVE NEVER NOR WILL I EVER LIVE OFF OF "DADDYS" MONEY!!!!

THIS STRATEGY WORKS FOR EVERYONE THAT IS TRYING TO BETTER THEMSELVES THRU TAX LAWS MEANT FOR THE RICH BUT ALL OF US CAN UTILIZE THEM TO HELP OURSELVES AND OUR FAMILIES!

YOU CAN USE THIS SAME APPROACH ON TRUCKS, TRAILERS, EQUIPMENT, COMPUTERS, LAW MOWERS, FARM EQUIPMENT, ETC.   THIS STRATEGY CAN BE USED FOR ALL---RICH OR POOR AND AS LITTLE AS $1 TO $1,050,000!!

[marsh99]

SECTION 179 APPLIES TO ALL PURCHASES.....WHE THER IT IS $1 DOLLAR OR UP TO $1,050,000.  PERIOD.   

THE INVESTMENT OFFSETS ORDINARY INCOME UP TO $1,050,000.   IF YOU PURCHASE A HORSE AND FINANCE IT WITH $1 DOWN AND PAYMENTS OVER 3 YEARS YOU CAN STILL EXPENSE THE ENTIRE PURCHASE EVEN IF YOU ONLY PUT $1 DOWN.

YOU DO NOT HAVE TO BE RICH---FOR THIS TO BENEFIT.

AS A SIDE NOTE MY FATHER WAS A TRUCK DRIVER AND GOD REST HIS SOUL PASSED AWAY IN 1973!!!!  THEREFORE, I HAVE NEVER NOR WILL I EVER LIVE OFF OF "DADDYS" MONEY!!!!

THIS STRATEGY WORKS FOR EVERYONE THAT IS TRYING TO BETTER THEMSELVES THRU TAX LAWS MEANT FOR THE RICH BUT ALL OF US CAN UTILIZE THEM TO HELP OURSELVES AND OUR FAMILIES!

YOU CAN USE THIS SAME APPROACH ON TRUCKS, TRAILERS, EQUIPMENT, COMPUTERS, LAW MOWERS, FARM EQUIPMENT, ETC.   THIS STRATEGY CAN BE USED FOR ALL---RICH OR POOR AND AS LITTLE AS $1 TO $1,050,000!!

Exactly. It's legal and it supports breeders, trainers, vets, etc. Whether you think the whole industry is beyond saving or not (and granted there are some jackasses who cheat), the industry does support a huge amount of honest jobs and keeps small farms in operation. Doesn't matter if you spend $1,000,000 or $10,000 on a yearling, you still get the benefit. And if it hits, and you win big with the next Seaside or Sweet Lou, you can buy more to offset your gains and further support the industry.

Good accountants with knowledge of this industry are vital.

[Kole Hanover]

 I can't see Tactical Landing being all that in the breeding shed, first day there were a bunch of over priced ones & their price fell off a cliff, every other day.


 
 I see these 2 horses(& many more) below are way over priced. Being in the first 75 hips of the sale- got them a ton more $$$. Suckers were there bidding large(with others money)- just to be seen & heard.


 Tactical Landing is going to be a bust, I loved the Walners last year & have a decent  colt who went out to the field a couple weeks ago to get some well deserved rest, he owes me nothing, colt has a nice amount stashed away for his training bills next year to boot.


  1)   #71 Una Madonna :  SIRE- Tactical Landing $100,000 Sons of Muscle Hill are 3/59 from Donato Hanover mares, Does not fit sire profile

  2)  #68 Anointed:   SIRE- Tactical Landing $260,000 Sons of Muscle Hill are 0/38 with Pine Chip mares

 

 Look at the difference between Mr.Jacobs & that other guy who sues people, can't compare them 2.

[Overcheck]

Still a high risk proposition.   Why not write the check for an income producing asset?  One with better resale than 95% of those horses purchased at sale.  I guess if you have that much $ it's hard for us common folk to comprehend.

[augustaandy]

wealthy people wish to win races and have massive income they need to write off

purses higher than ever, OHSS and KYSS

 

[LUCPARK]

Indiana purses soon to jump up as well


Record sales broken


At Lexington

Harrisburg. Around corner

So is the Hoosier classic sale

[Overcheck]

wealthy people wish to win races and have massive income they need to write off

purses higher than ever, OHSS and KYSS

I can understand that they want to win races.  That's an ego thing.  What I don't understand is that there are much smarter options to obtain a write off.  My takeaway is that the tax laws really haven't changed anything.   People will always overpay to feed their ego.  Now they can just justify it by paying more.  Breeders and stakes programs are the beneficiaries.

[Kole Hanover]

I can understand that they want to win races.  That's an ego thing.  What I don't understand is that there are much smarter options to obtain a write off.  My takeaway is that the tax laws really haven't changed anything.   People will always overpay to feed their ego.  Now they can just justify it by paying more.  Breeders and stakes programs are the beneficiaries.

 It is all a game of "Look at me"...

 The breeders are eating this shit up,

 I could have pin-hooked my Walner last year for 3x what I paid for him- but I figure if I train him down then I may as well roll the dice & it did pay off but its always wise to cash out in the black & re-invest with house funds.

[Overcheck]

Tough decision for sure.  I agree best to get in position to play with house money if possible.   Some of the race programs put sales price in them and majority of them are under water.  The amount of money out there just must be unbelievable.  I'd say this is the peak but time will tell.  Stupid money is only stupid for so long.

[NJ The best]

This guy Matt Morrison spending money all over , babies tough game.

[marsh99]

I am all for using every single benefit of the tax system to your advantage, but when you bring horse racing into the conversation, I think it is smarter to opt out - it will always be the wiser financial choice. Write offs or not horse racing is for financial fools who are wasting time waiting for god.

As for the other items you mentioned, you are spot on.

Good point. I should clarify:

A good CPA will know how to apply the write offs.
A great one will tell you you're an idiot for investing in horse racing in the first place LOL.