Tip of the Month
NAES' Tip of the Month

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United States Equestrian Federation

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M. Allred

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NAES is celebrating the Top 10 Tips from our Archives

#8 From: June 2012
The NAES TIP OF THE MONTH for June must focus on the way clients of pros are regularly cheated out of thousands and thousands of dollars during horse sales. Always verify sale prices and veterinary pre-purchase exams. Read carefully this month’s true CASE OF THE MONTH. Please call me any time you have even the smallest question for a NO CHARGE comment.
I do not mind in the least!).

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Previous "Tips of the Month"

JULY 2020
#9 From: July 2015
Every horse owner should have a plan for emergencies and updated annually. What you should have in place - Plans for Evacuation, Communication, Contacts, Transportation, Identification, Medical Records and Photos, Supplies, and a back up plan. Here are four resource links that will help you identify and create a plan to fit your needs: AAEP - UCDAVIS - AVMA – FEMA

JUNE 2020
#10 From: August 2019

With application of a transponder under the horse’s skin, it would seem that your horse’s ownership can be validated. Even in these modern times, the establishment of true ownership is still very important. Under the rule HU 104 for the USHJA it’s a requirement for any horses entering a hunter or jumper class at a USHJA/USEF show to have the chip applied to your horse.

May 2020
Know Your State Feed Lien Laws - It is helpful for boarding stable owners to be an expert in their own state’s feed lien laws, (sometimes called agister’s laws). With the economy as it is, your signed boarding contract is crucial. Jurisdictions may allow ownership to pass to you after a certain number of days of abandonment or non-payment of past due bills. Be sure to have an attorney review the boarding contract and the attorney should review your state’s Feed Lien Laws.

April 2020
We are in tax season. Your CPA should review section 183 of the IRS code that outlines nine items which are necessary when claiming deductions regarding your horse business. Code number three refers to time and effort spent by the taxpayer. Code number two examines the “The Expertise of the Taxpayer or His Advisors”. You must document what you have learned and put into business practices throughout the year to run the horse business profitably to meet IRS requirements.

March 2020

Having a pre-approved baseline appraisal on your horses can make an IRS audit much easier. This gives you and the IRS an idea of what your capital is worth.

February 2020
Your show horse no longer competitive? You may want to consider an equine donation. Schools and facilities use retired show horses as therapeutic riding schools, colleges, university equine programs, and veterinarian schools. You will always want to check out the facility that you are considering, insuring that the care for horses, their surroundings and the management skills at the facility meet your standards of care. A tax write-off will require a proper valuation above $5,000.00 and compliant with IRS and USPAP Guidelines.

January 2020
Purchasing a horse from overseas can often be a gamble, especially if you do not speak the local language. You absolutely must bring your own vet because if you don’t I can about promise you’ll be fleeced. In fact, if you have any questions about what to do, please feel free to call me, and I’ll give you some pearls of wisdom.

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December 2019
Santa may be kind to you this Christmas and give you or someone in the family a new horse. Always make sure your relationship with the equine livestock mortality insurance provider is very good, so all it will take to bind coverage would be a quick phone call followed with an email or FAX which specifies everything.  Remember, that even at this joyous time of year, bad and unfortunate things can still happen.

November 2019
HELSINKI (AP) — In a glimpse of the future, an entire sports event has been run on horse manure. Put that horse manure to good use! …the Finnish used it to run their recent 2019 Helsinki International Horse Show. More than 150 megawatt hours of energy was created from the 100 tons of manure collected from competing horses during the event in the Finnish capital, which hosted the FEI World Cup jumping qualifier. More at this link https://www.courthousenews.com/finnish-horse-show-powered-entirely-by-manure/

October 2019
The horse industry is very subjective and it is invaluable to have a third party such as an equine appraiser to determine valuation. For example, the show horse business is so very subjective, that is, it is one person’s opinion as to the specific performance of each horse. From the blood lines of each foal to the willingness and obvious ability of the brand new horse…. a value is established. From the insured worth to the horse’s performance an accurate price is developed with the help of an equine appraiser or other horse expert.

September 2019
I was speaking to one my many lawyer friends and he stressed again the importance of making sure the new owner of a registered horse always has received the horse’s properly transferred registration documents, even before any money has changed hands.

If, as the new owner, you can’t verify the properly transferred “papers,”…. your new horse is worthless. And don’t believe the seller when he says the papers are someplace else and he’ll mail them “right away.” Unfortunately, people lie all the time, and you’re out the money and stuck with a four legged paper weight that eats.

August 2019
Even with application of a transponder under the horse’s skin, it would seem that your horse’s ownership can be validated. Even in these modern times, the establishment of true ownership is still very important. Under the rule HU 104 for the USHJA it’s a requirement for any horses entering a hunter or jumper class at a USHJA/USEF show to have the chip applied to your horse.

July 2019
Safe Sport is the program adopted by the US Congress as a remedy in the junior aged athletic sports which provides protection for young people who may be targeted by child predators. The program is important in making sure our young athletes don’t fall victim to these very bad people. All adults involved in the horse sports are required to comply with the rules.

June 2019
Hereditary equine regional dermal asthenia (HERDA) isa genetic skin disease predominantly found in the AmericanQuarterHorse. Within the breed, the disease is prevalent in particular lines of cutting horses. HERDA’s symptoms show scaring, etc. and shows up in certain bloodlines. The best idea is to contact the AQHA in Amarillo, TX to get the latest bloodlines, which are reducing, and of course, speak to your veterinarian during the all-important pre-purchase exam.

May 2019
When purchasing your next horse, make sure your vet examines all medical records from the previous owners.
They will aid in focusing the pre-purchase examination toward possible soft tissue injuries requiring ultrasound tests.

April 2019
Horse owners must make sure that whoever hauls their horses must have really good insurance including CCC, (Care Custody and Control) protection but I’ll tell you in advance, most car owners will NOT have CCC insurance.

March 2019
Tax season is coming up. Be sure that you and your CPA review Section 183 of the IRS tax code which outlines nine items deemed necessary when claiming your horse business deductions. “Heads up” regarding Section 183 of the IRS Code, factor #2 examines "The Expertise of the Taxpayer or His Advisors”; document what you have learned and put in place throughout the year to run your horse business profitably to meet IRS requirements.

February 2019
Many years ago the mantra often repeated by the media, was that the rise of computers will give the average person much more free and leisure time. Of course, how sad our lives are now simply owing to much more complexities from all quarters of life. What I’m getting to is the clear necessity to keep track of all your personal and equine business doings. So at the beginning of our new year 2019 is the best time to keep track of ALL items and file everything, that is, ALWAYS KEEP THE ORIGINAL PAPERWORK. To imagine your accounting software will last more than a year or so is wishful thinking.

January 2019
At this time of year it is always wise to verify that your attorney and accountant/CPA are all talking on the same “wave length,” that is your horse “hobby” is actually your business. In that regard, everything in your life is tax deductible.

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December 2018
When showing one of your horses to a potential buyer, always do whatever possible to determine the prospective buyer’s abilities. Then, always have them sign a release prepared by your attorney, because accidents do happen.

November 2018
It’s important to support your local tack and equipment store since folks are finding out that AMAZON does not have the all your horse supplies. Try shopping at your old local saddle shop and giving business back to them.

October 2018
When purchasing your new horse with the aid of an agent or your trainer, always make sure you ask any questions that pop into your head. Thinking of an important question after you just paid a lot of money is obviously way too late, and the answer perhaps would have negated the entire sale.

September 2018

Years ago, the brands inspector was a large part of the business. However, those days are long gone, but not the responsibility of making sure your horse is legally yours. So the words of wisdom is to be really crazy at making sure all the paperwork is squared away, and you really do own your special friend.

August 2018
Insurance is always a consideration and now may be the right time to think, plan and prepare for the items in your business that must be protected by appropriate levels of insurance. Planning where and when the money will be spent is critical.

July 2018
One of the often overlooked rule stipulations in the AQHA is that the Association any registered horse over 25 years of age is probably deceased. Obviously if your prize winning horse is older than 25 years, it sure would be a good idea to let Amarillo know.

June 2018
My tip for all my friends out there is to not ever be bashful when asking about anything regarding your family horses and your all-important business. (Remember, Dr. Peterson reminds us all to think like a lobster).

May 2018
Here’s some really good advice to those of you who operate a commercial riding stable. Always make sure that your guests always have a riding helmet on. It would help if you can have an assortment of helmets for the riders to choose from. Now for the big part: You must tell them that under no circumstances will they be allowed to ride without the helmet on. I wish I could take you to one of the many neurological wards where patients with significant brain injuries are. Just seeing folks who will never recover from the many brain injuries, will do a lot to change your mind about helmets.

April 2018
At least once per year I like to caution horse buyers to understand the difference between the pre-purchase exam (difficult), and the yearly insurance exam (easy). If you are uncertain, please call for a no-charge explanation of each. It could save you lots of money.

March 2018
Obviously we are in TAX season, so it’s always good to see how your horse-related business comports with the IRS’ Section 1.183. Pay attention to Factor # 2 “The expertise of the taxpayer and his/her advisors.” You have so much to give to your business. Besides, that’s why you got into the horse business in the first place. Always let the IRS know about all you bring to a very specialized business. In other words – “Toot your own horn!’

February 2018
Always remember to stay with your horse if he’s tied up anywhere close, since you are the one responsible for each and everything he does. I just got done with the case of a horse tied to a trailer who got loose and caused the death of an innocent motorist; very sad indeed.

January 2018
If you are the parent of a young rider, it’s always ok to politely ask specifically what your trainer is doing to make sure your child is performing up to par and make sure you are doing all that is necessary to support and encourage her.

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December 2017
Members of the USEF need to note the changes in the membership period for all the membership levels. The USEF membership period previously followed the horse show year, and beginning December 1st, 2017 the membership goes for 365 days from the date of application, whenever that happens.

November 2017
Words of advice can and do result in bad things which may happen to your horse. Such as, let’s say your trainer says to always tie your horse’s head up when shipping, but in your next trip with your horse a minor fender bender panics your horse who tangles himself in the tie rope. Can you sue your trainer?.... No way, because his advice is easily verifiable and is done by most if not all horse owners and haulers.

October 2017
A terrific piece of advice was given to me as a young pro, many years ago. The information was to always, always, always get a thorough veterinary pre-purchase exam for the new horse you or your client is buying. It amazes me how often a client just takes the word of the seller or close friend who swears the horse is “sound as a dollar.” Only to find out later about drastic health issues.

September 2017
Always make sure your leather bridles and saddles are properly cleaned every time you ride. Even if the tack is old and perhaps not the finest available when you purchased it, even old tack can be brought back to its new and soft condition if you take good care of it.

August 2017
Although not a lawyer, I’ve been able to help hundreds of attorneys, insurance companies and those needing horse expert assistance in understanding the many facets of the horse world. My advice has always been to at least have an attorney as a member of the business side of your equine world. Being responsible for the many areas where accidents could and will happen means you must always be on the lookout for problems. If nothing else, your lawyer can give you the numerous “what if’s” you must look out for.

July 2017
When I was a very active show stable owner, I always instructed owners of any horses leased out to create very specific, direct contracts. My attorney always knew he must be very precise in every part of the lease agreement. In order to make sure every item was covered, my clients were always advised to take at least 3 days to think of each and every “what if.” If done correctly there were never less than 3 typed pages for the lease contract.

June 2017
When taking care of a friends horse or horses, let’s hope you have been given full authority to call for veterinary care and a signed statement from the horse’s owner releasing you from a financial obligation except items of gross negligence or willful misconduct.

May 2017
When selling a horse, always make sure there are no loose ends which may come back to haunt you, the seller. Non-standard veterinary items or association fines are only two samples which need to be at least addressed.

April 2017
FULL DISCLOSURE is all-important in the horse industry. All the parties must put everything in writing, preferably by your attorney. Fraud goes on all the time so it’s critical to verify all statements of fact.

March 2017
Every so often, it’s important to check your horse’s teeth. However, it seems that each state has different ideas about who should be legally allowed to examine or treat your horse’s teeth; a vet, licensed in his state, or a specialist, trained only in dental work but is NOT a licensed veterinarian. Always check before paying big bucks for the dental work needing to be done to your prize show horse.

February 2017
Every year it’s especially important to review the requirements in the IRS’ Section 183. As stated before, this section lays out the requirements necessary in separating a horse related hobby and a legitimate business eligible for proper deductions.

January 2017
It certainly is that time of year again when all horsemen need to get current with our show horse’s insured valuation plus get an appointment with your insurance person and your farm’s attorney.

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December 2016
Make sure the prospective buyer of your horse signs a waiver and is wearing protective headgear which they provide themselves. Under no circumstances should you provide one of your safety helmets. In addition, make sure you have the requisite liability insurance. If you are a professional and use your home owner’s policy expect the policy to be cancelled.

November 2016
As we approach the year end, I’m sure your farm will be eligible for a series of award banquets. Always verify the correct number of points have been given to your horses. If you’re a professional trainer it’s always your fault if the banquet announcer gives the incorrect point count to your best client’s horse.

October 2016
Keeping current records on your horses is important for any number of reasons – medical issues, sale of the horse, appraisal, etc. For safekeeping, those records should be stored in electronic and hard copy form in several locations. Digital files can be stored in the cloud online, and on storage media. Hard copies should be kept in a safe deposit box and at home/office safe for quick access.

September 2016
Breeding Stock – Be informed before you buy. When purchasing breeding stock at a public auction verify that confirmation weaknesses have not been medically altered. State statutes do not always require sellers to disclose surgically corrected conformational weaknesses. Review medical records, any breeding history and check certification of DNA lineage. And, have your personal vet accompany you to verify any medical anomalies.

August 2016
Safety First at Dude Ranches - A riding vacation can be an exciting adventure, but make sure that the operators are looking out for their guests. Young, old, inexperience, and experienced riders all have different requirements. Helmets must be provided and required. No sneakers/tennis shoes allowed, (no true heel on your shoe can let your foot slip through a stirrup). The wranglers must match horse to rider and should not let anyone ride alone. Other considerations: What condition are the horses in? Does the ranch supply a safety list or hold a mandatory class for guest riders instructing safety around horse? Do they carry proper insurance cover riders? A red flag should go up if they do not address any of the items above.

July 2016
When hauling horses other than your own, be prepared. Consult with your insurance carrier to find out if you need an umbrella policy added to your coverage. You should also have a written agreement with the horse’s owner to establish who will be responsible in case of injury. Make sure that your trailer and towing vehicle are in top mechanical condition. You would not want to be sued due to negligence in maintaining your equipment.

June 2016
When obtaining insurance for your horse business, make sure that your brokerage specializes in equine coverage. Here is a short list of coverages to consider: Commercial Equine Liability, Horse Farm Property, Horse Farm General Liability, Stallion Infertility, Equine Mortality and Theft, Care – Custody - Control, Private Horse Owner Liability, Medical, Disability, Farrier Liability, and Bloodstock Insurance. Anyone involved in the horse industry (commercial and recreational) needs to be well informed and have adequate coverage.

May 2016
All verbal contracts or agreements have the possibility of becoming “WORTHLESS.” While most states may have some sort of wordage on a verbal contract, the lesson should always be that the verbal version must not be counted on to protect ones interests because every verbal agreement may be changed with a written contract.

The verbal contract will always be suspect since there may be a written version “hiding in the weeds” just waiting to pop out and derail what the verbal contract was supposed to fix.

The lesson therefore, should always be, especially where money is involved always have a written contract drafted by an attorney licensed in the state where the contract is written. State laws can influence the verbiage of the agreement.

April 2016

When leasing a horse to someone, or leasing for yourself, be sure the contract stipulates all responsible parties for: insurance; mortality and liability, vet and farrier bills, when to contact the owner if the horse is injured, feeding schedule, restrictions where the horse can be ridden, and if the horse is allowed to be transported across state lines. Other documentation should include recent photographs, show records along with a current “in good health” Vet release.

March 2016

When guests are at your farm for an afternoon ride, make sure that everyone wears protective head gear that complies with the ASTM F1163. All helmets should have an SEI safety tag. And note: parents cannot sign a waiver excluding their child from wearing a helmet.

February 2016
Tax season is coming up. Be sure that you and your CPA review Section 183 of the IRS tax code which outlines nine items deemed necessary when claiming your horse business deductions. “Heads up” regarding Section 183 of the IRS Code, factor #2 examines "The Expertise of the Taxpayer or His Advisors”; document what you have learned and put in place throughout the year to run your horse business profitably to meet IRS requirements.

January 2016
The responsibilities when operating a commercial stable includes proper maintenance of tack. If a patron is injured while riding and tack malfunctions, you could be headed for a lawsuit. Un-maintained tack equals negligence on your part.

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December 2015
Your insurance company should be made aware of the safety procedures used at your horse barn. Be sure that written policies are available to anyone involved in activities at your facility. This will go a long way in mitigating your liability if and when someone is hurt.

November 2015
When purchasing horses overseas, remember that most countries do not follow the AAEP minimum standards. Have all vet records sent to your veterinarian for evaluation. However, if budget permits, it is best to have your own vet do an on site evaluation prior to your purchase. Besides your vet’s involvement, insure that your lawyer reviews the sales agreement since purchases overseas are covered by their country’s laws which may not stand up to adjudication in a U.S. court.

October 2015
Even though states and their equine statutes recognize verbal and non-written agreements, it is imperative to have a written agreement signed by both parties. If there are changes, both parties must sign off on them as well. Be sure to have an attorney prepare the contract or at least review the document. If an issue arises, the written agreement takes precedence over a “hand shake”.

September 2015
Each month I post a tip that may help you in your horse activities. Some of these seem to come up now and then…”Don’t let inaccurate healthcare records stop you in mid campaigning for end-of-season points because a vaccination was missed and now your horse is stall bound for the rest of the season. The lesson: Keep better records than your vet”.

August 2015
When you are out of town and having someone taking care of your horses, make sure that you have a written schedule of duties for feeding, turnout, contact and emergency plan. The schedule should be signed by both parties and there should also be a third party who oversees and insures that the safety and care have been delivered.

July 2015
Every horse owner should have a plan for emergencies and updated annually. What you should have in place - Plans for Evacuation, Communication, Contacts, Transportation, Identification, Medical Records and Photos, Supplies, and a back up plan. Here are four resource links that will help you identify and create a plan to fit your needs: AAEP - UCDAVIS - AVMAFEMA

June 2015
To insure an accurate appraisal on your Warmblood, verify credentials and ask if the appraiser is familiar with your specific breed. Do they have the professional knowledge in Breed Standards, Keuring (KWPN & KWPN-NA) and specific disciplines? Are they well versed in understanding medical records and assessing show records?

May 2015
Horse related jobs are often performed by junior riders for compensation. This can present a problem after they turn amateur and continue working in the same related duties. The USEF rules have very strict guidelines in defining amateur versus professional status. Junior riders should be aware of these rules and know the ramifications. Questions regarding amateur/professional rules can be sent to amateurinquiry@usef.org

April 2015
One of the most important items before you file a lawsuit is to create a living, descriptive account that recalls everything concerning your case. It will enable your legal team and experts to get up to speed on your case and will help save time and precious dollars. Taking the time to map out your case helps immensely in you winning at trial or accepting a good settlement.

March 2015
The Tip of the Month for March is one I’ve repeated before. Always be careful to have lawyer-prepared lease agreements for any of your horse temporary activities. These would include showing a client’s horse and training at an event. It’s so important to protect your livelihood in case “the worst” happens. This is also a great time to review all your insurance documents.

February 2015
Tax season is here and you may want to consult with your CPA regarding IRS Section 1.183 and/or the "passive loss" in
IRS Code 469. The code relates to your ability to demonstrate your deductable "material participation" in 7 regulatory tests.

January 2015
Remember that Breed Associations only shows the registration of the horse and does not certify who owns the horse.
To prove ownership, keep copies of your notarized bill of sale with you and with the proper authorities such as your attorney.

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December 2014
Does your accountant understand the IRS' Section 1.183?
These points must be addressed when you are operating a horse related business.

November 2014

Running an equine association or rescue requires volunteers for various duties. Don't forget to have all volunteers sign a waiver and be thoroughly familiar with horse safety protocol. Keep the records archived for potential legal matters.

October 2014
Care, Custody & Control (CCC) Insurance should be in effect at every commercial stable, but make sure you have high enough limits: as your business progresses the value of horses you train or haul goes up. Not having enough CCC Insurance can mean claims not being paid.

September 2014
When it comes to showing your fabulous show horse, adequate mortality and major medical insurance will take a lot off your worry list. Mortality insurance is quoted at a percentage of the agreed upon value and major medical is priced often at a flat fee.

August 2014
Summer time gets families going on trail rides. This is not the time to forget the safety of helmets for all family members. Visiting sisters or brothers in the hospital is not a good way to spend those days off.

July 2014
Summertime is often the time to lease out your horse to a college student home for the summer break. Such times require you have a well prepared release to protect you should your horse or the home-for-the-summer rider be injured.

June 2014
President Reagan always used the old Russian slogan “Trust But Verify.”
The same slogan always applies when buying a horse.

May 2014
As a stable owner I sure hope you’re keeping track of every single last item to be deducted. Giving your CPA an organized, well-prepared list to deductions goes a long way in receiving a big fat refund.

April 2014
If you earn your living as a professional horse trainer, accident costs can quickly escalate. Make sure Care, Custody and Control insurance is at the top of your list just for peace of mind’s sake.

March 2014
It is tax season and under Section 183 of the tax code, the IRS uses nine factor tests to determine if a horse operation is conducted for profit or as a hobby. In particular, 183-3 mentions time and effort expended by the taxpayer in carrying on equine business activity i.e., show ring success, and time in marketing your operation.

February 2014
It’s very important to pay close attention to what your horse eats. The science of feeding to win has come a very long way in the recent years. Keeping track of your horse’s protein intake can vary so much from the trail horse to the open jumper; pay attention.

January 2014
The end of 2013 and the beginning of 2014, a new year, is a great opportunity to carefully review your stable’s safety procedures. Always make sure to have an accident form handy for your instructors to use if an accident occurs.

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December 2013
The importance of full disclosure in all dealings regarding your horse purchase is so important. Just because the trainer or agent is very kind does not remove their responsibility to accurately and honestly tell you all the information concerning your horse purchase. In other words, “Trust but Verify,” to quote a former President.

November 2013
Your posted barn safety rules are so important. From the first day a boarder brings their horse and during their entire stay, the boarder should be able to recite your barn safety rules by heart. This will help your case in any potential insurance claims.

October 2013
The ”Tip of the Month” has been an important part of the NAES web site for many years. You must have figured out by now that the “tips” are, in most cases, just plain common sense. If you see every horse related item from a “common sense” approach, for the most part, your history in horses will be good.

September 2013
Valuating your horses with an eye for future business and tax consequences is important. Make sure you clearly anticipate the need for justifying your horse’s value so you are not caught off guard and with limited time to complete an acceptable appraisal.

August 2013
When offering your horse for sale you must demand that potential buyers sign a release and wear protective headgear. Accidents happen and you must be prepared to “look out” for your “invitees” to your premises when trying your horse for sale.

July 2013
In buying and selling a horse, large sums of money are often exchanged. It’s so important that all the relative documents be exchanged. The bill of sale (signed by both buyer and seller) and registration records must be exchanged. Don’t assume that the paid seller will always forward the registration just because they say they will.

June 2013

When renewing your horse’s mortality insurance remember that any prior year’s illness from colic, etc. must be reported. If your horse has been previously treated for colic, the illness must be reported. If your horse dies later in the calendar year, your state’s statutes may not require the insurance company to pay your mortality claim.

May 2013
Accidents do happen. Make sure you have a hold harmless release drawn up by your family or company attorney when your horse is in third party hands. Always prepare for the worst and be pleased by the best. Remember that we live in a very litigious society; you must protect yourself. Don’t be ill prepared.

April 2013
Throughout the United States certain veterinary procedures require written authorization before the veterinarian picks up that scalpel; make sure you’re aware of which procedures require your signature first in your state.

March 2013

Tax season is a great time to remind yourself to review your horse insurance. We know you hate to even think about losing your “special friend” so make sure you know the difference in “full mortality” or “loss of use” policies.

February 2013

The early part of the calendar year necessitates that you prepare for those all-important first shows. Make sure that if you’re hauling horses you protect yourself with lawyer prepared contracts.

January 2013
As you compete in various activities with your favorite horse always remember to demand full disclosure in each and every transaction you perform. Do not ever hesitate to call for free advice because I always have an eye out for you protection.

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December 2012

In all your horse dealings demand full disclosure. Accepting the seller’s agent saying that the pre-purchase vet passed the horse you’re buying isn’t enough…confirm with the vet himself or herself.

November 2012

The responsibility of the horse’s owner is so important. Especially important is keeping track of as many identifying data as possible including feed. That way if the horse becomes ill you can easily trace the background of the feed because you have lot numbers, etc.

October 2012
Always keep an extra set of your horse’s papers handy. Trying to find old bills of sale and registration papers is your duty as a horseman. Just imagine yourself flinging papers around as you attempt to justify your show horse’s value for an insurance increase.

September 2012
Selling agreements are very important so do not neglect them. In fact having your attorney draft one makes sense.
List all the items you need to keep in mind since this is your one chance to specify everything you want the transaction to reflect. Do not be so elated that your horse is sold that you skip the important facts which could come back to haunt you later.

August 2012
Hauling someone else’s horse is a huge responsibility. Make sure you have a signed release by the horse owner and additional insurance to protect you. These two items are very important.

July 2012
Buying horses over the web still truly amazes me. A kind father called last week regarding a lame horse bought by his 18 year-old daughter. She had already paid the previous owner when the veterinarian discovered very bad hoof issue; go figure why you’d buy a horse before the pre-purchase exam! (Please call me any time you have even the smallest question for a NO CHARGE comment…I do not mind in the least!).

June 2012
The NAES TIP OF THE MONTH for June must focus on the way clients of pros are regularly cheated out of thousands and thousands of dollars during horse sales. Always verify sale prices and veterinary pre-purchase exams. Read carefully this month’s true CASE OF THE MONTH. Please call me any time you have even the smallest question for a NO CHARGE comment…I do not mind in the least!).

May 2012

Most states have statutes that address feed or stablemen’s liens; know them well. You can find the statutes for your state on my website under the Litigation Consulting pull down menu.

April 2012

The horse training business is certainly like none other. However, the business you have depends on your honesty since your character goes a long way in influencing your clients and competitors…plus getting more clients.

March 2012

If you’re getting a divorce, hopefully you have planned ahead to make sure you’re listed as “owner” on the registration papers. I know it sounds crass, but thinking ahead, even in community property jurisdictions, can save your sanity and a legal nightmare after the marriage goes south.

February 2012

Keeping track of all your receipts and bills is priority in assuring all deductions get recorded. Perhaps it would be wise to use a desktop scanner to scan and store documents into separate journal accounts.

January 2012

Wanna save some money?.......If you’re considering buying or leasing a new horse please call me morning, noon or night
(as the saying goes). I’ll be more than happy to give you a totally unbiased view on items you’ll need to look for.
I even have a toll-free number: 623-582-8635

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December 2011

Every month I give a tip that may help you in your horse activities. I never tire of relating instances that seem to happen
over and over. This month’s tip is to never rely on “verbal” or non-written agreements even though states have statutes
that address them. Always have a written agreement and make sure both parties sign off on any changes, too.
Naturally, having an attorney prepare the contract is very wise.

November 2011

I cannot stress enough the importance of quality photos in recording your horse’s talents. Please note the accurate timing of Ms. Lili Weik’s picture of this month’s HORSE OF THE MONTH. Pictures such as this help in winning cases when necessary. Such talent takes many hours and a special gift.

October 2011

Pictures and videos chronicling a horse or rider’s performance can be critical in determining damages.
Becoming fast friends with the horse show photographer is expensive but crucial at trial.

September 2011

Fraud in the horse business is alive and well as I just found out after having received a multi horse case from New York.
The warning should be very plain; always verify every point of the sale transaction, then call me, Dave Johnson,
at 623-582-8635.

August 2011
Numerous saddles and bridles have been stolen by some very creative thieves in California lately. Always lock and check the security of tack-rooms or tack-trunks. One of the best protections is a Doberman. Thieves walk around dog-protected areas.

July 2011
Tip of the month for July 2011 revolves around the always mysterious procedure of creating some sort of document,
signed by both parties, memorializing your horse transaction and prepared by an attorney; just do it!

June 2011

The very recent outbreak of EHV-1, (a mutant form of RHINO), should remind us all to be fastidious in cleaning every horse, all surrounding areas and especially YOU!

May 2011

You and your trainer both need to review your new horse’s pre-purchase exam especially if there’s an item that’s not within accepted norms. You both need to agree on what you can and can not live with.

April 2011

Several years ago I wrote on the increase use of horse leases. You, the owner, must specify all you can imagine when identifying what the lessee must do for then duration. Use your attorney to put in everything possible.

March 2011
ALWAYS have Section 183 and its nine points at the forefront of your stable’s planning.  As many times as I remind stable owners there are always those who fail to plan.  In other words, “bug your CPA”.

February 2011

Healthcare for your show horses is so important since campaigning for end-of-season prizes can sure be messed up by sicknesses created because a vaccination was missed. The lesson: keep better records than your vet.

January 2011

The Case of the Month for January, 2011 involved a spectator who was not aware of a polo match being played right next. The tip is simply to “pay attention” to your surroundings. Accidents seem to happen to those who are unaware.

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December 2010

We’re coming up on the year’s end.  Planning your horse show activities will in large part be affected by the continuation of US tax policies.  Stress to your Senator or Representative the importance of “doing what’s right” for our country and horse economy.

November 2010

Always get pictures or video recordings of your favorite horse or horses.  You’ll never know when they might come in handy.  Even if the video recordings are by your cel-phone…GO FOR IT!

October 2010

The most recent Horse of the Month reminds us of the need for disclosing every medical-related call on the insured animal.  Equine insurance companies can refuse coverage if even one visit is undisclosed thereby spelling trouble when a claim is made.

September 2010

Sending your horse to an agent to sell does not relieve you of making sure your horse is marketed honestly. Always have a written agreement with the agent. Remember the agent equals “YOU.” You can still be sued if your agent lies or cheats.

August 2010

International horse events can give all of us local equestrians an upper level target at which to aim. Much can be learned from watching the top international contestants. The World Equestrian Games will be held at the Kentucky Horse Park in late September, 2010.

July 2010

At the recent University of Kentucky symposium on equine law some of the top tax attorneys expressed great concern over the new aggressive nature of the IRS. Independent contractor status will be closely examined. IRS estimates that FICA taxes are short by $14 billion.

June 2010

Every Time, Every Ride chronicled head injuries sustained by all ages and experience levels of riders.
Head injuries still occur way too often; the latest was to a dressage Olympian on March 8th , 2010.

May 2010

Driving your 4 or 6 horse rig into some states requires a CDL, (Commercial Drivers License). Don’t let some arcane license requirements spoil your horse showing experience. In other words, check each state traveled.

April 2010

In a "down" economy it is becoming common to find sale horses for "rock bottom" prices or "FREE" for the taking.
ALWAYS insist on the legally transferred registration papers. Remember, those papers are needed for breeding
and "breed-specific" horse shows.

March 2010

NAES has been doing our Qualified appraisals for over 30 years but never have we done more “lease horse” appraisals.
If you’re the owner be very specific as to the lease contract. I know you want the horse “out the door” but make sure your attorney takes the time.

February 2010
Tax time is appropriate to review the “passive loss” IRS Code Section 469, enacted in 1986 and blamed for the horse recession starting that year. Demonstrating your deductable “material participation” in the required 7 regulatory tests is paramount; know them!

January 2010
Because of worsening economic conditions police are responding to many more stolen truck reports.  Many vehicles mostly high end trucks are stolen from horse show hotels.  Always use “The Club” or similar steering wheel blocker.

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December 2009

It always amazes me that written contracts aren’t demanded of every “deal.” Even on “small” transactions
…demand them in writing.

November 2009

Horse owners often develop their hobby into a business but so slowly they're unaware they've become a commercial entity.
Always keep your CPA and the requirements of IRS Sec. 183 in mind; it could save you lots of dollars.

October 2009

Your home farm’s horse business may grow so much that the normal homeowner’s insurance won’t take care of claims the insurance company determines to be commercial in nature. Keep the insurance person advised.

September 2009

Are you planning to get an NCAA Equestrian Scholarship under US Title 9 for your post-junior child rider? For kids going to school in the fall it’s probably too late but there may be a “walk-on” as defined by the NCAA; check with the school available.

August 2009
Assuming that your friend won’t sue you when their horse is hurt in your trailer is so naive. Insurance to protect you and a signed release by the horse owner are very important.

July 2009
Operating a boarding stable in a down economy can be rough. Get references from previous boarding stables. If the prospective boarder has been slow before…they’ll do it again. “Trust but verify,” (President Reagan after Reykjavik talks).

June 2009
With the economy in a slump the boarding stable needs to be assured of prompt payment by its boarders. Each state has statutes that address feed or stablemen’s liens; know them well.

May 2009
Because of the US Title 9 requirements for colleges and universities, young women are being welcomed with open arms into schools offering fully paid tuition and board; what an opportunity!

April 2009
Horse association memberships may offer secondary liability insurance. If you’re found at fault in an accident, this insurance may come into play.

March 2009
Horse rescue groups are popping up all over. However, please be prepared to do the most due diligence possible; just because the horse is inexpensive don’t believe everything that’s told to you.

February 2009
As the horse show season begins, its imperative the owner verify items on their horse's entry blanks. The trainer (who often fills them out) may make an error which could penalize the owner.

January 2009
Mission statements for so many horse associations focus on the animal's well being not financial rewards. Your goal should be to always look out for your horse's safety since it aids you as well.

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December 2008

Boarding stable owners have to be expert in their own state’s feed lien laws, (sometimes called agister’s laws). Local attorneys and county clerks usually won’t have the foggiest idea what they require.

November 2008
Equine mortality insurance sometimes gives you the option of a “loss of use” endorsement. Just because your show horse can’t do everything he used to do, doesn’t always mean you collect.

October 2008
Our children and horses are special. Looking out for our horse’s safety means safety for the rider as well. Rules for each sport should be aimed at protecting both.

September 2008
Buying your new show horse requires confirmation that no previous association penalties have been applied. If the horse has been previously “set down” it may mean the horse cannot now compete without a “suspension release.”

August 2008
Because the cost of a lawsuit is so steep make sure your "horse transaction" is memorialized with lawyer-prepared, well-written contracts. The small contract prep charge will be a fraction of litigation expenses.

July 2008
Full disclosure regarding your horse purchase is a necessity. Knowledge and verification of previous ownership, veterinary and show records will prove so helpful should problems occur.

June 2008
As the seller in a horse deal you must be aware of your agent’s actions. Some states can actually charge you with complicity if you know or should have known of illegal actions by your agent.

May 2008
When consulting your lawyer regarding a possible horse-related case, make sure and explain yours and the opposing arguments completely. Your written account of all the facts including names, addresses and phones can save your attorney much in hourly charges to you.

April 2008
Since the horse anti-slaughter acts are being enforced, be very careful to which rescue barn you donate your horse. Verify the conditions and their compliance with IRS Rule 501.(C), 3.

March 2008
The IRS likes to see growth in the value of your horses, (capital appreciation), each year. Significant sales and Qualified Appraisals can ease your burden of proof.

February 2008
Section 183 of the IRS ‘s tax code outlines nine items it deems necessary when claiming your horse business deductions, (Sec. 1.183-2). Now’s the time to review them with your CPA.

January 2008
When receiving a veterinary report of a pre-purchase exam make sure you, the prospective buyer, understands the language thoroughly.

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December 2007
Breeding popular stallions has become a very lucrative industry, particularly for the top stallions. However, conformation weaknesses can show up in strange genetically linked qualities which you'll have to pay to get fixed. State statutes do not always require sellers to disclose surgically corrected conformational weaknesses.

November 2007
Your signed boarding contract is very important. Jurisdictions may allow ownership to pass to you after a certain number of days of abandonment or non-payment of past due bills.

October 2007
When discussing a rival’s horses, be careful to not disparage them; it may come back to haunt you in the form of a slander suit from the competitor.

September 2007
Junior riders are often remunerated for horse-related jobs. A problem can occur after they turn amateur and continue those same paid activities. Associations are very strict on amateur vs. professional status; make sure you know the rules.

August 2007
If you board horses on your property it may be a good idea to have vendors such as farriers name you as an additional insured when coming on to your property to shoe your horses.

July 2007
The Bill of Sale is all-important. It is a legal document showing value, ownership (not the registration papers), and is the only document proving your ownership. Always have an attorney draw it up.

June 2007
Secret commissions and hidden profits are prevalent in the horse business; be aware. Insure that you have direct communication with the horse owner.

May 2007
Shopping for horses on the Internet is so simple...but a magnet for fraud. ALWAYS verify information supplied to you. Remember not to believe everything that you read.

April 2007
Horse leases involving the payment of expenses must specify remedies for numerous "what-ifs." Make sure you both agree on what is to happen if the horse dies, gets sick, goes lame, etc.

March 2007
Be sure to draw blood on your new horse's pre-purchase exam to verify there are no forbidden substances as defined by the USEF.

February 2007
EHV-1 herpes virus has now struck some Northern California racetracks. Some of the symptoms can be vaccinated against so forewarned is forearmed. In addition, quarantine any new horse in your barn.

January 2007
When receiving a veterinary report of a pre-purchase exam make sure you, the prospective buyer, understands the language thoroughly.

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December 2006
Before branding your warmblood with a mark, verify through DNA that the breed is authentic.

November 2006
Re-evaluation of your horses for tax purposes is important in maintaining IRS 183 provisions; a Qualified Appraisal at year's end can aid your business deductions.

October 2006
Make sure foreign veterinary exams and x-rays are sent for final assessment to your own stateside veterinarian.

September 2006
A previous case of mine involved my client/defendants’ misplacing the appropriate liability waiver, (they are like gold since a signed waiver often precludes suits).

August 2006
Breed registrations, like Quarter Horse, American Saddlebred, etc. are never proof of who actually owns the subject horse; but the bill of sale is.

July 2006
Make sure your vet examines all medical records from the previous owners. They will aid in focusing the pre-purchase examination toward possible soft tissue injuries requiring ultrasound tests.

June 2006
An overseas horse purchase demands due diligence. The US market price and your own vet’s assessment are really what count. NEVER count on a vet in a foreign country to look out for you.

May 2006
IRS Section 183, #3 mentions the importance of "...time and effort expended by the taxpayer in carrying on the activity." Show ring success and time spent aids in marketing your operation and meeting IRS requirements.

April 2006
Hold-Harmless waivers for businesses working with minor children should be signed by both parents. Many states require both parents to sign the waiver. You could be sued by the parent who "didn't" sign.

March 2006
Under Section 183 of the IRS Code, factor #2 looks at "The Expertise of the Taxpayer or His Advisors." Make notes of things you learn to run the horse business profitably.

February 2006
Legally speaking, the general and USEF mandated use of an ASTM-approved helmet just makes sense. Using such head gear goes a long way toward showing your concern for safety. (See GR318.3)

January 2006
Resolve for the New Year to know the particular association rules under which you show. It would be embarrassing to find out at year’s end that points “earned” won’t count because of an oversight 12 months earlier.

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December 2005
When breeding your prize mare be aware that mistakes can be made in assigning the stallion you wish to breed to your horse. Always get a DNA test to confirm the exact parentage.

November 2005
Sending your horse to someone else to sell necessitates a contract spelling out who is responsible for vet bills, showing costs, mortality insurance, etc. A hand shake will not hold up in court.

October 2005
When showing your horse to a potential buyer, demand they wear a helmet especially if the buyer is a minor. For children in NY 14 and under, helmets are mandatory!

September 2005
If you have to “evict” a boarder, it might be a good idea to get a health exam, proving their horse was healthy when it left your care.

August 2005
Make sure each of your guests at your farm signs a waiver before riding one of your horses. Minors MUST wear a helmet and their parents must sign the waiver.

July 2005
Section 183 from the IRS is the “# 1 punch” for your horse business. The “#2 punch” is Section 469, the “Passive Loss” provision which you and your CPA must address.

June 2005
Today, many horses receive feed supplements. Keep track of all ingredients; it may help your vet diagnose a toxic feed problem.

May 2005
Insurance companies are very concerned about your horse barn safety procedures. Having and using a written policy can go a long way in mitigating your liability if and when someone is hurt.

April 2005
Horses purchased overseas are covered by their country's laws which may not stand up to adjudication (if necessary), in a US court. Ask your lawyer to review the sales agreement.

March 2005
IRS audits are handled much easier if you have a pre-approved baseline appraisal on your horses. This gives you and the IRS an idea of what your capital is worth.

February 2005
Hauling someone else's horse? Make sure you have a written agreement absolving you of any responsibility.

January 2005
Closing the sale on your horse requires that "all" the monies come to you first. This enables you to directly pay commissions and fees.

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December 2004
Buying a horse requires another pair of "eyes". Pay your trainer to help; it is well worth the cost.

November 2004
The sale/purchase of your horse, even if inexpensive, ALWAYS requires a written not verbal, legal agreement.

October 2004
When transferring horse ownership always use Qualified Mail or a reputable overnight service. By doing so, you will have documented records.

September 2004
Always notify your horse insurance specialist immediately when a new horse is purchased. Your agent will often "bind coverage" over the phone.

August 2004
Unable to find a "horse attorney" near you? Not to worry, an attorney skillful in preparing contracts will do the trick.

July 2004
Full disclosure in the purchase/sale of horses is absolutely imperative. Your trusted trainer should readily agree with this requirement.

June 2004
Unable to find a "Horse Attorney" near you? Not to worry, an attorney skillful in preparing contracts will do the trick.

May 2004
Horse insurance protects you from the loss of your horse. Make sure you know the different "full mortality" or "loss of use" policies.

April 2004
Accurate appraisals are highly dependent on a horse's performance. Always have your favorite horse photographed and videotaped.

March 2004
More judicial agencies are requiring Qualified Horse Appraisals. The appraisal from the horse pro down the street will not qualify.

February 2004
Pre-purchase vet exams are important; do not let a seller get by on the less rigorous "insurance" exam.

December 2003 and January 2004
When buying a horse, a legal and binding full-disclosure contract protects both the buyer and the seller.

November 2003
In order to take a tax deduction greater than $5,000 on a donated horse, the IRS requires a Qualified equine appraisal.

October 2003
Does your CPA fully understand the IRS' Section 1.183? These points will affect your horse business.

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NAES would like to thank all of the contributing photographers for their generosity in allowing
NAES to post photographs throughout this web site. Photo credits are listed, where appropriate.

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