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Thu Jul 19, 2012, 12:19 AM

need quick help:

Is the tax deduction for Mitt's horse medical, or a business expense?

11 replies, 1094 views

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Response to JanMichael (Original post)

Thu Jul 19, 2012, 12:21 AM

1. They said on the news awhile back: 'business deduction' n/t

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Response to JanMichael (Original post)

Thu Jul 19, 2012, 12:24 AM

3. I believe it's actually against a "hobby" that earns money.

Hobbies can earn money but if the hobby is not considered "businesses" by the IRS, the deductions are reduced (depreciation, losses against other ordinary income are not deductible etc.).

Since "hobbies" can earn money, the earner can also write off actual expenses against those earnings.

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Response to Hassin Bin Sober (Reply #3)

Thu Jul 19, 2012, 12:39 AM

5. Sounds like that's what happened,

he sought $77,000 deduction, and received only $49.00.

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Response to elleng (Reply #5)

Thu Jul 19, 2012, 12:52 AM

7. My understanding is the $77k can be carried forward against future hobby earnings.

How long, I don't know.

My republican brother in law was recently griping about "the gubmint and taxes" because he got a bill in the mail from the IRS for $15k. The IRS is saying his "business" (poker tournaments) is a hobby because he hasn't earned money in a couple years and he also has a real job. The in-laws apparently have been taking big deductions for the last several/couple? years since the brother-in-law won $100k in an online poker tournament. The BIL is still traveling the country attending tournaments but not taking in any profits. That's fine. But the IRS isn't going to allow deductions against regular employment income of his and his wife's W-2 employment.

The in-laws feel put upon (by Obama of course). I guess they assume they get free deductions for life because he won one tournament.

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Response to Hassin Bin Sober (Reply #7)

Thu Jul 19, 2012, 01:01 AM

8. Thanks.

Glad I didn't study TAX!

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Response to JanMichael (Original post)

Thu Jul 19, 2012, 12:26 AM

4. I heard weeks ago that it was a business expense..........

I questioned this as he has stated that his wife uses the horse for therapy for her MS. What I think it is, is that it couldn't be used as a medical expense, so they used it as a business expense instead.

This is FRAUD!!!!!!!!!!!!

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Response to JanMichael (Original post)

Thu Jul 19, 2012, 12:42 AM

6. I read that he only got a $59 deduction for the horse, so please do a little research before

posting something that might backfire on you.

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Response to Booster (Reply #6)

Thu Jul 19, 2012, 01:03 AM

9. He sought $77,000,

but was allowed only $49.
See above posts. Not exactly simple, I'm sure Poster recognizes this!

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Response to Booster (Reply #6)

Thu Jul 19, 2012, 01:04 AM

10. I think the $$$$$ is correct

http://www.theatlanticwire.com/politics/2012/06/ann-romneys-dressage-horse-has-great-health-care-plan/53769/

Rafalca, the Romney's Olympics-bound dressage horse, nets the family a $77,000 tax credit, $2,000 of which, according to Current's calculations, is for what they spent on health care for the horse. The average American family only spends $1,557 a year on health care.

You remember Rafalca, right? Ann Romney's special horse who competes in a strange Olympic sport called dressage that colleague Elspeth Reeve helpfully explained with GIFs.

Current made an infrographic breaking down where exactly the $77,000 tax credit the Romneys registered for the horse on their 2010 returns breaks down when put up against the average American family. The tax credit for a child is only $1,000 so Rafalca is already 77 times more valuable than your little preciouses. And yes, the horse has a fantastic health care plan.

Unsurprisingly, Rafalca outpaces the average family in shelter and transportation. A horse that's basically a fashion model with rhythm couldn't live in squalor or travel lightly. Rafalca pays about $2,400 a month for rent, versus the American family's $1,362. Rafalca also spends about ten times as much on clothing in the space of a year than the average family. It's hard out there for a dressage horse.

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Response to Booster (Reply #6)

Thu Jul 19, 2012, 01:12 AM

11. The OP mentions no dollar amounts. Perhaps an apology and/or edit is in order.

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