Kentucky Congressman Introduces Three Proposals to Reform Tax Code

The reforms would benefit the racehorse industry.

Edited press release

Congressman Andy Barr has introduced three proposals to reform the tax code. The reforms would benefit the racehorse industry.

Congressman Andy Barr (R-Kentucky), the chairman of the Congressional Horse Caucus, has introduced three bills that would make simple reforms to the tax code to encourage greater investment and participation in the racehorse industry.

These reforms are needed to reflect the realities faced by participants in the horse industry and to provide a level playing field between equine investments and other forms of investments.

HR 1804, the Race Horse Cost Recovery Act, would permanently reschedule race horses that are put into service before the age of two into the three-year depreciation asset class. This change is needed because the three-year depreciation schedule better reflects the useful life of race horses, as opposed to the seven-year schedule.

HR 1805, the Equine Tax Parity Act, would reduce the holding period requirement from 24 months to 12 for equine investments, allowing equine investments to qualify for capital gains tax treatment on equal terms with similar types of assets.

HR 1806, the Race Horse Expensing Certainty Act, would allow all investments in racehorses to be immediately expensed consistent with Section 179 of the Internal Revenue Code. This legislation is necessary to provide clarity and certainty within the tax code that all equine assets are available for Section 179 expensing.

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