Specifically, the bill provided 100 percent “bonus depreciation” to classes of assets including sport or breeding horses, allowing buyers to write off the upfront cost of a horse in its first year. It also contained beneficial language for the definition of the types of horses that are eligible for bonus depreciation – previous language included the term “racehorse,” which in some IRS offices meant a horse that had started in a race. The new language applies to any horse meant for racing, allowing depreciation to kick in once the horse begins training for its racing career.
