Financials
Initial cost of the partnership
The initial cost includes the purchase of the Stable, mortality insurance and an estimation of all expenses incurred on the Stable through the end of the Stable's three-year old year. The initial fee does not include owner's licenses or race day accommodations.
The Budget included in the initial investment includes the following expenses:
- Stable Purchase - purchase amount of the entire package of horses offered
- Training Expense - Includes vanning, blacksmith, training bills, jockey fees, nomination fees
- Veterinarian Expense- Includes all veterinarian pre-sale exams and expenses incurred in the training of the stable with the exception of surgery
- Insurance Expense- All horses are initially insured for their purchase price through Limestone Equine Insurance Agency.
- Accounting- All financial paperwork, quarterly reports and end-of-year tax reports and info.
- Administrative- Includes all website maintenance, bookkeeping, photography, office supplies
Financial reporting
All Investors will receive a full summary of itemized partnership expenditures each month detailing the income and expenses of the Stable via the website.
The tax treatment of the Company
The Company will be taxed as a partnership. Therefore the tax attributes will flow through to the members and the Company will not be taxed at the entity level. A link will be set up on the Company website that will give some guidance regarding tax matters of owning thoroughbred racehorses. Investors are encouraged to seek the advice of their personal tax advisor with regard to the tax consequences of membership in the Company.
Tax reporting
K-1 forms reporting tax information are supplied prior to March 1 in the calendar year. Investors will be able to download these forms from the website.
Tax Articles