Steps To Making A Horse Racing Partnership Succeed For You
Maybe you are giving some consideration to joining a horse racing partnership or syndicate, or possibly you are already actively involved? If either is the case, it’s vital you quickly familiarize yourself with how to set up all your records correctly so that you keep a complete track of your share and find yourself fully prepared for tax time or other financial necessities.
It’s assumed that you will expect the IRS to view your horse racing involvement as a business, so it’s necessary that you manage your share in systematic and professional way. To begin correctly, ahead of committing to a partnership, you should form a precise representation of not only your expectations, but exactly what the partnership is providing for you as well. A well written business plan should summarize your expectations for the syndicate and what you hope to achieve with your venture. Listed are points that you will need to incorporate into your horse racing partnership business plan:
* Where you plan to obtain the funds necessary to make both the initial investment in a horse racing partnership and to cover the monthly expenditures.
* A projected schedule for the partnership, the length of the contract: 1 year, 3 years, etc.
* Manner in which the partnership horse will be purchased: by auction, out of a claiming race, or by private purchase.
* An estimate of anticipated winnings and also costs.
* Spell out the limits whereby the partnership will work, for instance, do you hope to race nationally or would you prefer to remain local.
* Define your expectations for insuring your investment, (i.e. liability and mortality insurance).
* Does the contract provide a clause allowing you to get out of the partnership?
Looking beyond a business plan, it will be necessary for you to construct your business appropriately, recording income and expenditures. Some points you should consider when setting up your books are:
* Find an accountant with verifiable experience in horse racing partnerships.
* Open a new checking account restricted to transactions covering your share in the horse and name it accordingly - Elizabeth Jones dba Jones Racing, LLC.
* Keep all bills, receipts, check stubs from winnings, etc. that relate to your horse racing partnership activities.
* Keep an appointment book and travel log to document appointments, visits to the racing stable, phone calls, any travel, all associated mileage, etc.
Using a good plan of action, anyone can become involved in horse racing with clearly defined desires and methods. You will then be in the perfect position to pick the right horse racing partnership. You will also be equipped to carefully track and record all your equine tasks effectively, thus preparing you for tax time. Preparedness will ensure that things run smoothly and that will leave you free to really take pleasure in your brand new racehorse!