Benefits for Horse Industry in Small Business Stimulus Bill

The American Horse Council reports that President Obama signed the Small Business Jobs and Credit Act of 2010 into law on September 27, 2010. The bill is intended to help small businesses and create new jobs. The bill continues the bigger write-off for horses and other property purchased and placed in service by a horse business that were originally included in earlier stimulus bills.
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The American Horse Council reports that President Obama signed the Small Business Jobs and Credit Act of 2010 into law on September 27, 2010. The bill is intended to help small businesses and create new jobs. The bill continues the bigger write-off for horses and other property purchased and placed in service by a horse business that were originally included in earlier stimulus bills.

The first incentive allows an owner who purchases a horse or other business property used in a horse business and places it in service in 2010 or 2011 to expense up to $500,000 of the cost. This so-called "Section 179" expensing allowance applies to horses, farm equipment and most other depreciable property. Once total purchases of horses and other eligible property reach $2 million, the expense allowance goes down one dollar for each dollar spent over $2 million. Without the bill the expensing allowance would have been $250,000 in 2010 and gone down to $25,000 for later years.

"Let's assume a horse business purchases $750,000 of depreciable property in 2010, including $650,000 for horses, and places it all in service. That business can write off $500,000 on its 2010 tax return and depreciate the balance," explained American Horse Council President Jay Hickey.

This provision will benefit any business involved in the horse industry that purchases and places depreciable property in service in 2010 or 2011

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