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Aust Tax Office Accepts Horse Business Losses
Horse breeders, owners & trainers "have won a major reprieve from a planned Australian Taxation Office crackdown on expenses such as fees, vet bills, floats & race-day costs," reported The Australian Financial Review. The ATO's 1st ruling on the horse industry in 15 years "accepts that horse breeders & racers can qualify as a business & are not just a hobby & waters down key provisions that would have restricted tax deductions". Mills Oakley tax lawyer John Storey commented: Genuine horse businesses exist in many varieties, albeit they can take some time to be profitable. In the new ruling the ATO appears to be taking a more reasonable stance… They seem to acknowledge that legitimate racing & breeding businesses can incur losses."