|NTRA Legislative Update: May 5, 2005
The NTRA seeks to pass new federal legislation to increase the tax benefits
of racehorse ownership. The proposed legislation will enable owners to
depreciate their racehorses over a three-year period, regardless of the
horse's age at the time it is placed in service. Under current law, horses
more than 24 months old when placed in service as a racehorse are depreciated
as "three-year property." Horses placed in service at age 24
months or older are depreciated as "seven-year property."
Since racehorses are traditionally considered to be placed in service
at the time training begins, consignors of two-year-olds could gain an
increased deduction for depreciation.
The legislation will be introduced during the current legislative session,
with the goal of attaching the bill to "must-pass" tax legislation.
NTRA members can help secure passage of this provision by contributing
to the Legislative Action Campaign or the NTRA's Horse PAC. The Legislative
Action Campaign supports federal lobbying needed to secure new legislation.
Horse PAC makes contributions to federal candidates who favor tax reductions
for horse owners and breeders.
A favorable tax environment is essential to grow the market for bloodstock,
attract and retain owners and improve the economics of horse breeding.
To learn more about the NTRA's Legislative agenda, visit our website www.SupportHorseRacing.org.
.For more information about the NTRA’s legislative programs, call
Joe Clabes at the NTRA, 800-792-NTRA or email Jclabes@NTRA.com.