We focus on affordable, accessible ownership and pinhooking opportunities
Today’s strong yearling market can be prohibitive for new owners and smaller buyers
Today’s strong yearling market can be prohibitive for new owners and smaller buyers, but we are looking at some major tax breaks especially if you ACT NOW before January 1, for the 2017 Tax Year
I have a number of opportunities available for 2018, and it makes sense to invest before the end of 2017 due to the Tax Bill cleared by Congress for President Trump’s signature which contains a number of provisions beneficial to horse breeders and owners, according to an initial assessment by the National Thoroughbred Racing Association (NTRA).
The package also includes significant and positive changes to depreciation and expensing of yearlings, breeding stock, farm equipment and other qualifying depreciable property.
Bonus Depreciation: An increase in bonus depreciation from 50 percent to 100 percent for both new and used property acquired and put into service after Sept. 27, 2017, and before Jan. 1.
Bonus depreciation permits first-year, full expensing for purchases such as yearlings, breeding stock, and farm Equipment.
The prior tax law provided for 50 percent depreciation on new property only. The new benefits will be effective at the 100 percent rate through 2022. Beginning with 2023, bonus depreciation will be phased out at a rate of 20% each year until fully phased out after 2027.
So any yearling purchased between now and January 1, 2018, is eligible to be a depreciation deduction of 100% of the purchase price. They can be fully written off.
I have some opportunities. to race or pinhook, available for first come, first serve, resting, however, on our compatibility as partners. I like to talk to prospective clients and partners. I like partners I can have fun with, I am sure you have all been in tough situations with partners and its not fun.
I have the following horses available at this time:
1.) Freud Colt NY bred yearling, turning 2 on January 1, 2018, who is already in training with Rudy. We love him, he is a good looking forward individual I bred. He will be going to Michelle Nevin in NY for Saratoga this summer. Freud colt SOLD OUT
Freuds are hot, and we would love to run, win and sell.
He is insured, and under Rudy's at Classic Mile in Ocala. He is already broken, galloping in company. He will get a break for a month in February. The time helps bone density and they grow like weeds when you give them time. He may start breezing in April and be ready for Saratoga.
2.)MacLean's Music weanling colt, soon to be a short yearling on January 1, first foal out of a mare that is very well bred, Bestpersonalregard. He is a really nice individual (video available). MacLeans Music colt sold out.
He is insured and would like to see his development under our program with Rudy Delguidice at Classic Mile before mapping out a plan for him as a yearling in 2018. Write me at Bruno@racingwithbruno.com for pedigree sheet
3.) Afleet Alex weanling filly out of my Taxi Dancer, by Not for Love mare. She is a half sister to Mizzen Max who won first out as a 2yo and have never been worse than second. See Mizzen Max on Equibase.com
She is insured and a very good individual. Alex filly SOLD OUT
4.) I may have an opportunity for 2018 Oaklawn also, as one of my former partners and I own a 3yo gelding earner of almost $80,000. My partner nearly died in November. He is selling his stock. We have given the gelding 3 weeks off, taken him back to Ocala. We have gone over him and he looks sound and happy. He will go to Brad Cox. Send me info if interested in a piece of him. I am not selling my share, only my partners.
He is also insured and a solid individual.
I like passion FOR the sport, but with a twist of business that makes monetary sense. We have also, quietly had a terrific last ten years with a win% of 19.2 ad 41.1% ITM. We win races and we have sold horses, including one for $700K, however, horses are expensive and we can only live the dream if we can afford them.
I need partners that share my passion but like me, don't have bottomless pockets.
Finally, we believe in relationships, and we would love to partner with those who share our passion for the game, value integrity, and have the patience to do the right thing for the horse and our shared investment. We may not be for everyone and someone may not be right for us, but we promise that we do our best to maximize each horse
Talk to me for more information at 714 812 7866 or write me at Bruno@racingwithbruno.com for more.
TAX BILL BENEFITS BREEDERS AND OWNERS, DOUBLES CERTAIN DEPRECIATION PROVISIONS
The tax reform package benefits the horse racing industry by slashing corporate tax rates, reducing most individual tax rates, doubling the estate tax exemption from $5 million to $10 million (indexed for inflation occurring after 2011), and generally providing special tax treatment for certain pass-through entities (sole proprietorships, partnerships, limited liability companies, and S corporations).
Bonus Depreciation. An increase in bonus depreciation from 50 percent to 100 percent for both new and used property acquired and put into service after Sept. 27, 2017, and before Jan. 1, 2023. Bonus depreciation permits first-year, full expensing for purchases such as yearlings, breeding stock, and farm Equipment. Current law provides for 50 percent depreciation on new property only. The new benefits will be effective at the 100 percent rate through 2022. Beginning with 2023, bonus depreciation will be phased out at a rate of 20% each year until fully phased out after 2027.
Sec.179 Deduction. The maximum amount that may be expensed under this provision has been increased from $500,000 to $1 million for new and used property. Additionally, the phase-out threshold for the deduction has been increased from $2 million to $2.5 million. Both the maximum deduction and phase-out amount are permanently extended and will be indexed for inflation.
Farm Property. Machinery and equipment used in farming operations will be granted accelerated depreciation with a useful life of only five years and depreciation using the 200 percent declining balance method. The current law provides for a useful life of seven years and depreciation using the 150 percent declining balance method.
“At more than 700 pages, the tax reform bill and accompanying joint explanatory statement are enormous in both size and complexity,” said NTRA President & CEO Alex Waldrop. “While the overall impacts on each individual will vary, in general many of the provisions should have a positive impact on the economics of horse racing and breeding.”
For more information contact Bruno De Julio at Bruno@racingwithbruno.com
Bruno De Julio