If am currently self employed in equine therapy (mental health based) can these be deductions/loss?.

[shamrockequine]

I have been utilizing my horse solely in my practice (not for personal use).  Due to medical issues I had to put her down in October, so this took a toll on my business.  I have since purchased a new horse for the sole purpose of work.  My question is, can I deduct the vet bills/euthanasia/disposal fees as a loss?  And the purchase of the new horse as a deduction as well?

[Leonard · Accepted solution]

Yes, you can deduct the medical expenses associated with your horse that was used solely in your business practice.

You will depreciate the cost of the new horse using the following guidelines.

Horses are depreciated over either three years or seven years.

Broodmares, stallions, racehorses or other horses older than 12 years of age, are depreciated over three years.

Broodmares, stallions, show horses, riding horses, or any other horse 12 years or younger are depreciated over seven years.

[MarthaTee]

I use my horses Part time for my business which is an equine assisted learning and coaching business. I board them at a local farm which is also where I hold my workshops (and am charged a rental fee). Can I deduct some of my board, farrier, and vet expenses?  I purchased one horse this year - Do I claim him as an asset?

[RobertG]

Yes, you can claim all ordinary and necessary business expenses relating to your business, whatever your business is.

If you use an asset for both business and personal use, you can allocate expenses between the business and personal portions.

just use a reasonable method and keep records of what you did.

@MarthaTee