Agriculture Reference
In-Depth Information
membered, however, that during the year you sell a business asset, its expense potential
will have to be recaptured and treated as income.
Whenever you pay $600 or more to an individual or a nonincorporated business in one
year for services, you are required by law to fill out a Form 1099 and send it to the IRS and
to the business or person for him or her to report as income. So, if your bills for veterinary
work totaled $600 or more and your veterinarian's business is not incorporated, you should
issue a 1099 to your veterinarian. The same goes for your farrier, farm laborers, and so on.
IF YOU FILE SCHEDULE FOR C
If your horse operation qualifies as a farm or ranch operation or if you operate a horse-re-
lated business such as training horses or giving lessons, then you will want to keep accurate
records of your income and expenses. Definitions and requirements for your expenditures
to qualify for tax-deductible business expenses vary from year to year. Work closely with
your tax counselor for a current interpretation.
