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Favorable Tax Depreciation Rules For Race Horse Owners Remain in Place for 2016

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This post is courtesy of the September AHC Tax Bulletin.

AHC-Tax-BulletinOn December 18, 2015, Congress enacted the Protecting Americans from Tax Hikes Act of 2015 (the “PATH Act”), which extended various expiring tax depreciation rules that are applicable to the horse racing industry.1 Importantly, the PATH Act extended two important depreciation provisions that allow taxpayers who place a race horses into service during 2016 to recover their costs for such race horses in a more expedient timeframe. First, the PATH Act maintained the rule allowing taxpayers to depreciate the costs of a racehorse over a three-year recovery period. Second, the PATH Act retroactively extended the 50% bonus depreciation available for taxpayers that place race horses into service through December 31, 2019.

Read the bulletin here

 

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