By John Alan Cohan, Attorney at Law
Often enough taxpayers who are audited in connection with their farming or livestock activities are questioned on the issue known in the tax law as the “material participation test.” Under this legal test, you are permitted to deduct losses against outside salary and wages only if, among other things, you “materially participate” in the activity. Many duties, such as training of animals, showing of show horses and racing of race horses, are delegated to qualified experts, and sometimes the IRS will question the validity of your own participation in decisionmaking, in an effort to say you have failed to meet the material participation test.
In response to feedback from its membership, the United States Equestrian Federation Board of Directors took the following actions in order to improve the process, procedures, and fairness of competition licensing.
The first action that the Board adopted toward these improvements will take effect immediately. The Federation office will no longer issue competition licenses extending beyond a one-year term, allowing the Board time to evaluate the mileage rules and the criteria for issuing and renewing competition license agreements. Existing multi-year license agreements will be honored.
Rich Fellers and Flexible, owned by Harry and Mollie Chapman, won Friday's $25,000 SmartPak Grand Prix, topping a field of 44 contenders at HITS Desert Horse Park in Thermal, California.
Fifteen horses made the jump-off and nine went double-clear. John Pearce, of Bermuda Dunes, California, and Chianto, owned by Forest View Farm, Inc., went second in the jump-off, finishing in 35.047 with the first double-clear, setting the Great American Time to Beat that held up through the next eight competitors who tried to catch him. Fellers, of Wilsonville, Oregon, went 13th in the jump-off, completing the round in 34.488 seconds to take the lead.
The USHJA $2,500 National Hunter Derby, presented by Tucci saw 45 horse and rider teams compete for the win in the Main Hunter Arena Friday afternoon.
The competition was steep and the handy round challenged the riders with a natural trot fence which seemed to determine the win for the class.
Gabriella, owned by Lulu Davis and ridden by Sarah Young of Spring Hill, Kansas won the class with a combined score of 181.
The Carriage Barn Equine Assisted Therapy Programs is looking for volunteers to assist with Therapeutic Horseback Riding & Carriage Driving, Fundraising, Events, and Fun Activities. Volunteers are needed at various times throughout the week to work with horses and clients.