How to Buy a Racehorse
Create a purchase and upkeep budget., Be a solo owner if you want more control., Purchase through a syndicate if you want less risk., Talk with your tax advisor.
Step-by-Step Guide
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Step 1: Create a purchase and upkeep budget.
It is possible to buy a racehorse for $1,000 or even $100,000 plus.
Look over your finances and consider how much you are willing to reasonably spend.
Then, add into that budget an amount for yearly care and training.
You can expect to spend upwards of $25,000 each year for boarding, training, medical care, and other costs., This is where you buy a single horse outright with your own funds.
You’ll reap all of the rewards for winning, but you’ll also take on all of the risks of the investment.
This is a nice option for owners looking to purchase an entry-level horse in order to get to know the art of ownership.
It is often the ownership approach of owners who also double as horse trainers., This is a type of ownership where multiple people divide the costs, and the rights, to one or more horses.
Most syndicates operate under a very specific set of guidelines, so it is important that you really understand these terms before agreeing to anything.
You’ll also need to be comfortable with splitting the process of decision-making.In many of these arrangements, the syndicate management handles the process of choosing a stable, trainer, jockey, and all that a horse needs to thrive.Investment terms are not usually lifelong, but instead typically last anywhere from three to five years.
During that period, you will likely be billed on a regular basis for your percentage of the horse’s upkeep.Corporate ownership is another version of a syndicate.
This is where you use a horse to promote a particular company or brand., Many horse owners choose to treat their purchase as the groundwork of a limited-liability company.
This gives them a chance to then structure their taxes around profits and losses.
Meet with your tax advisor and discuss how this purchase could affect your overall tax profile and come up with a strategy prior to buying. -
Step 2: Be a solo owner if you want more control.
-
Step 3: Purchase through a syndicate if you want less risk.
-
Step 4: Talk with your tax advisor.
Detailed Guide
It is possible to buy a racehorse for $1,000 or even $100,000 plus.
Look over your finances and consider how much you are willing to reasonably spend.
Then, add into that budget an amount for yearly care and training.
You can expect to spend upwards of $25,000 each year for boarding, training, medical care, and other costs., This is where you buy a single horse outright with your own funds.
You’ll reap all of the rewards for winning, but you’ll also take on all of the risks of the investment.
This is a nice option for owners looking to purchase an entry-level horse in order to get to know the art of ownership.
It is often the ownership approach of owners who also double as horse trainers., This is a type of ownership where multiple people divide the costs, and the rights, to one or more horses.
Most syndicates operate under a very specific set of guidelines, so it is important that you really understand these terms before agreeing to anything.
You’ll also need to be comfortable with splitting the process of decision-making.In many of these arrangements, the syndicate management handles the process of choosing a stable, trainer, jockey, and all that a horse needs to thrive.Investment terms are not usually lifelong, but instead typically last anywhere from three to five years.
During that period, you will likely be billed on a regular basis for your percentage of the horse’s upkeep.Corporate ownership is another version of a syndicate.
This is where you use a horse to promote a particular company or brand., Many horse owners choose to treat their purchase as the groundwork of a limited-liability company.
This gives them a chance to then structure their taxes around profits and losses.
Meet with your tax advisor and discuss how this purchase could affect your overall tax profile and come up with a strategy prior to buying.
About the Author
Melissa Clark
Brings years of experience writing about DIY projects and related subjects.
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