Horse Racing Partnerships

Anybody a partner in a horse? A couple of buddies and I are going to start buying into some partnerships and I am trying to figure out how to set things up for us. I plan on setting up some sort of LLC that actually owns our share(s) of our horses. Any insight that anyone can offer would be appreciated.

Thanks

 

Here in Calif. there are all kinds of partnerships. Some are very successful and some have been big ripoffs. Having a good trainer is very important.

I've had small percentages in three thoroughbreds and half interest in one standard bred. The only win I had was with the harness horse and that was the biggest thrill of my life.

 

Thanks Don, I have no illusions of grandeur, I enjoy the Sport of Kings and have a couple of buddies who are big into it. We all thought it would be fun to be part of an ownership group and are buying in. Get a group of us out to the track when our horse runs. Give us a little skin in the game of something we would be betting on anyway.

I think we have our stable and horse actually decided on. I am actually trying to figure out how to set us up. I'm thinking an LLC that will own our share of the horse and or horses down the road. We need an entity to divvy up our losses or just maybe our small profit. If the worst thing I get out of it is a K1 loss to lower my AGI, then that's not such a bad thing.

Thanks again.

 

Ask your tax man for advice. Sometimes the IRS will not allow write-offs for horse racing. They consider it a hobby because only about 5% of the owners ever show a profit.