Hold Your Horses on Those Taxes
How are racehorses taxed in New York? The answer is not as straightforward as you may have imagined.
Straight from the horse's mouth! Did you know that in New York, some racehorses are eligible for an exemption from sales and use taxes? Only a few breeds of horses are included in the tax break such as the standardbred, and the most popular racehorse, the thoroughbred.
But don’t jump the gun! According to The New York Department of Taxation, to be exempt from sales tax, the racehorse must be registered with The Jockey Club, The United States Trotting Association, or The National Steeplechase and Hunt Association. In addition, the horse cannot be more than 24 months old and there must be intent to enter a horse racing event.
Although New York use tax is due on the purchase of a racehorse if it is purchased outside the state and later brought in, there is an exemption from the tax if the horse is entered in racing events where pari-mutuel wagering is allowed no more than five days in any single calendar year.
More information and qualifications, including those on breeding and the maintenance and care of horses, can be found in the New York State’s Tax Bulletin.
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