Steps To Making A Horse Racing Partnership Succeed For You

December 10th, 2008 by C. Anne Baker

by C. Anne Baker

Maybe you are giving some consideration to joining a horse racing partnership or syndicate, or possibly you are already actively involved? If either is the case, it’s vital you quickly familiarize yourself with how to set up all your records correctly so that you keep a complete track of your share and find yourself fully prepared for tax time or other financial necessities.

It’s assumed that you will expect the IRS to view your horse racing involvement as a business, so it’s necessary that you manage your share in systematic and professional way. To begin correctly, ahead of committing to a partnership, you should form a precise representation of not only your expectations, but exactly what the partnership is providing for you as well. A well written business plan should summarize your expectations for the syndicate and what you hope to achieve with your venture. Listed are points that you will need to incorporate into your horse racing partnership business plan:

* Exactly how you expect to acquire the finances needed, first for the original purchase into the horse racing partnership, and then to pay the monthly outgoings.

* A time frame for the partnership, how long is the contract, 1 year, 4 years, etc.

* Manner in which the partnership horse will be purchased: by auction, out of a claiming race, or by private purchase.

* Projected income and operating expenses.

* Spell out the limits whereby the partnership will work, for instance, do you hope to race nationally or would you prefer to remain local.

* Define your expectations for insuring your investment, (i.e. liability and mortality insurance).

* Determine whether the contract includes a “get out” clause. What happens if you change your mind?

As well as a good business plan, you should also learn how to organize your business correctly, accounting for all income and expenses. Important guidelines you need to follow so that your business runs smoothly are:

* Hire an accountant knowledgeable in the field of horse racing partnerships.

* Set up a checking account and tag it with reference to the partnership, for example, Jeff Sanchez DBA Sanchez Stable, LLC. Use it only for partnership transactions.

* Keep all bills, receipts, check stubs from winnings, etc. that relate to your horse racing partnership activities.

* Set up an appointment diary and travel log and chronicle all appointments, phone calls, race track visits and all partnership associated mileage, etc.

Using a good plan of action, anyone can become involved in horse racing with clearly defined desires and methods. You will then be in the perfect position to pick the right horse racing partnership. You will also be equipped to carefully track and record all your equine tasks effectively, thus preparing you for tax time. Preparedness will ensure that things run smoothly and that will leave you free to really take pleasure in your brand new racehorse!

About the Author:

Thoroughbred horse racing has been an enormous component of Anne Baker’s life for three decades. She has bred and raced horses in North America and the UK. Her practical guide about Buying Into A Horse Racing componentnership is available free for just a limited time from componentners In Thoroughbreds.