Month: September 2020

Keeneland, Kentucky Downs Plan For New Racing Facilities In Southeastern Kentucky

Keeneland and the majority owners of Kentucky Downs announced Monday their filing of an application for a racing license and proposed construction of a state-of-the-art racing facility and related track extension in Kentucky to be located in Corbin and Williamsburg, respectively. The proposed facilities will feature live Standardbred racing and historical racing machines for guests from Kentucky and beyond.

Kentucky Downs, located in Franklin, Kentucky, is majority owned, controlled and managed by a partnership led by Ron Winchell and Marc Falcone.

“Horse racing is an extremely vital part of the Commonwealth's economy,” said Winchell. “With the addition of a new race track and related amenities in southeastern Kentucky, it will help to continue the momentum we have created for the state and our industry in recent years.”

“Keeneland has dedicated resources to this region and project for many years and we look forward to working alongside our partners at Kentucky Downs to bring this project to life,” Keeneland President and CEO Bill Thomason said. “This project will strengthen Kentucky's vital horse industry and positively impact the Commonwealth and the local communities by stimulating significant economic growth, generating hundreds of new jobs and enhancing tourism and hospitality.”

Officials from each racing association are working with state and local officials on a number of incentives and necessary infrastructure improvements to bring the facilities to fruition. Additionally, the venture is working with local investors to enhance the magnitude of the impact to the region.

“Corbin is thrilled to be a part of this endeavor,” Corbin Mayor Suzie Razmus said. “The new racing facility will be a welcome addition to our city's already long list of sites and attractions for local residents and visitors.”

“We are proud of the significant investment this partnership is committed to making in our community, and are excited to see the infusion of tourism, economic development and new jobs it will bring to Williamsburg and Whitley County,” Williamsburg Mayor Roddy Harrison stated.

Each facility is contingent upon approval of an initial pari-mutuel racing license by the Kentucky Horse Racing Commission.

The post Keeneland, Kentucky Downs Plan For New Racing Facilities In Southeastern Kentucky appeared first on Horse Racing News | Paulick Report.

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Local Trainer Hoping to Revitalize Racing in Antigua, Build a New Track

There has not been any racing in Antigua since June, 2019, and when it does return it will be contested at a bare-bones track that is too small, too narrow and doesn’t drain properly. There’s no certainty that racing in Antigua can survive, which is why a local horseman named Hansen Richards is behind an ambitious plan to build a new track on the Caribbean island.

“After all the work I have done, I cannot sit back and do nothing,” the trainer said. “I want to put horse racing in Antigua on the map.”

That won’t be easy. Richards is not a wealthy man and racing in his country is overrun with problems. But he believes he can find investors to help him fulfill his dream. He wants a new track to be the centerpiece of a multi-purpose facility that would include restaurants, shops, beach condos, a marina and, eventually, a casino. He has already found the land for the project, 377 acres that is valued at $32 million. The project would be similar to what the China Horse Club did when building a racetrack in Saint Lucia.

All Richards needs now is someone with deep pockets.

“I want to find an investor who can see the vision I have going forward,” he said.

Richards works as a customs inspector and trains as a hobby. He grew up poor and in a neighborhood where crime was a problem. He is inspired by the thought that his project could create jobs for his fellow countrymen.

“I was raised up in the ghetto,” he said. “I look at this as an opportunity to raise standards of living for my community and for my friends. Unfortunately, some of them have lost their lives to violence. I made a vow I would make our society better and provide some jobs and programs out of the horse racing industry.”

He originally wanted to play professional basketball at some level, but reversed course and started training in 2007. In Antigua, it’s not a job where anyone can expect to make a living, but there are people like Richards who are so passionate about the sport that they’ll dedicate many hours a week to training.

He is also working on creating a stud book for horses bred in Antigua. That would allow them to race in other Caribbean countries and, perhaps, in the U.S.

They’ve been racing at Cassada Gardens Race Track since 1964, running anywhere from 12 to 20 dates a year. Richards’ father was an owner, trainer and breeder and he brought his son to the track a time when he racing was a popular pastime on the island.

“The tradition is that it was a family affair to go to the races,” Richards said. “You’d get an average of 6,500 to 7,000 people at the races in the ’80s and ’90s. The people in Antigua love horse racing.”

Richards said that since racing reached its peak in Antigua, interest in the sport has dwindled and now a typical crowd might be 2,500. He said that one of the reasons is that little has been spent on upkeep or improvements and fans don’t want to spend the afternoon in what he says is a rundown Cassada Gardens facility.

The problem has only been compounded since June, 2019, when the final leg in the Antigua Triple Crown series was run. A spate of wet weather that began last summer caused racing to be canceled for the remainder of 2019 because the track was not fit for training. COVID-19 has kept the track closed this year. A possible re-opening in December has been mentioned by officials of the Antigua Turf Club.

But Richards doesn’t see Cassada Gardens as the future of Antiguan racing. It is lacking in many basic amenities and the racetrack itself is a 5 1/2-furlong track that is just 40 feet across and can’t handle a lot of rain.

“Our major issue of concern is the racing surface,” he said. “It has always been an issue and when you have inclement weather the horses cannot exercise.”

Another issue is the purses. They are so small that owners have little incentive to invest in horses. Richards said an average purse would be in the neighborhood of $800 U.S. Normally, Antigua gets most of its horses from places like Puerto Rico and Florida.

“It cost $6,000 U.S. to fly horses here from Miami,” he said. “That is a lot of money when you look at the purses. I do not encourage anyone to purchase horses to run here. I do it because I love it and I know what I am getting into.”

With a new racetrack, he sees Antigua simulcasting its product to other countries, picking up additional sponsors and increasing the amount of money brought in by gate receipts. There’s also the possibility of having a casino help fund purses.

Richards has created the company Mecke Development Corporation and has given himself the title of Managing Director. For now, it is little more than a concept. But its head executive is enthusiastic, driven and has a plan. He sees great potential for horse racing in his country and says he will do what it takes to ensure its future.

The post Local Trainer Hoping to Revitalize Racing in Antigua, Build a New Track appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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Proven Strategies: If You are an Independent Contractor, What Tax Deductions Are You Entitled to?

COVID-19 has changed the way we go about our daily lives. It has also increased the number of individuals who are self-employed and have no other employees, also known as independent contractors.

The formal definition of an independent contractor is a person or entity contracted to perform work for, or provide services to another entity as a nonemployee (meaning that the employee is “at will” and not eligible for an employer’s health or retirement benefits). The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to self-employment tax.

Self-employed professions such as jockeys, jockey agents, confirmation videographers, bloodstock agents, blacksmiths, veterinarians, exercise riders, equine chiropractors, bid spotters/auctioneers, sales short listers, etc. are all possible examples of horse-related independent contractors.

Prior to the enactment of the new tax act in 2017, if you operated your business as a sole proprietor, you could still take advantage of many of the tax deductions that you incurred. With the adoption of the new Tax Act came a limitation on the deductibility of state income taxes, real estate taxes and the elimination of all personal business-related expenses.

Expenses that Could Become Tax Deductible

There are a number of expenses, if you are in the above categories, that can be tax deductible such as the following:

a. Training–training expense whether for racing, shows or for sales become deductible
b. Professional fees
c. Veterinary fees
d. Vanning and other transportation expenses–if you own racehorses and/or consign horses at sales, you should be sure to include all transportation expenses
e. Work clothing–all of you involved in the training side of the business, including jockeys, should deduct any garments/outfits that are primarily worn while riding, breaking or training horses
f. Barn and stable supplies
g. Feed and shavings; as well as removal expenses
h. Books, magazines, online subscriptions and/or sales analysis reference guides
i. Breeding fees
j. Broodmare leases
k. Meals for employees who were taking care of the horses
l. Equine therapy
m. Depreciation (including bonus depreciation)

In order to ensure that you are maximizing the above deductions, be sure to communicate with your tax provider. Have your accountant confirm your status as an independent contractor and indicate that status on your tax returns. If you want additional legal protection, you may want to either form an LLC which provides you with additional liability protection or a Subchapter S Corporation.

Important Additional Fact

The deductions listed above are, in most cases, equally tax deductible for partners in an LLC or shareholders in Sub Chapter S corporations.

Increasing Your Retirement Contributions

Most independent contractors can make retirement contributions into an IRA. The annual contribution limit for 2020 is $6,000 or $7,000 if you are age 50 or older. If you have a Roth IRA, the 2020 contributions may also be limited based on your filing status and income.

However, there is a plan that will allow you to greatly increase your retirement contributions and simultaneously reduce your taxable income. A Solo 401(k), also known as a Self-Employed 401(k) or Individual 401(k) is a 401(k) qualified retirement plan that was designed specifically for employers with no full-time employees. The Solo 401(k) is unique because it only covers the business owner(s) and their spouse(s), thus, not subjecting the 401(k) plan to the complex ERISA (Employee Retirement Income Security Act of 1974) Rules which sets minimum standards for employer pension plans with non-owner employees. Independent contractors who qualify for the Solo 401(k) can receive the same tax benefits as in a general 401(k) plan but without the employer being subject to the complexities of ERISA.

The contribution limits for the Solo 401(k) are the same as a standard 401(k). They are broken down into a profit-sharing contribution, which comes from the employer and a salary deferral contribution which comes from the employee. However, due to the fact that in a Solo 401(k) the plan holder is acting both as employer and employee, the actual percentages assume a more meaningful role. If the plan holder is filing as a Sole Proprietor or Single Member LLC, which is true in most cases, then the limit is capped at 20% of the self-employed income, plus $19,000 for 2020. IRC Section 401(a)(3) states that the amount of employer contributions is limited to 25% of the entity’s income subject to self-employment tax. Schedule C sole proprietors must do an added calculation starting with earned income to determine their maximum contribution which, in effect, brings the maximum 25% of compensation limit down to 20% of earned income.

In both cases, the IRS has declared an upper limit for total employer and employee contributions to a plan, the IRS Section 415(c) limit which may not be exceeded. As of 2020, this upper limit is $56,000 for those under 50 and $62,000 for those 50 and older.

Other contribution limits may apply so we highly recommend that you discuss your options with your tax professional and/or investment advisor.

There may be alternative retirement plans such as SEP which you may be eligible for.

Bottom Line

The Thoroughbred horse business is like no other business when it comes to its complexity, challenges and strategies.

The same can be said as to how to maximize your tax deductions.

If you have any questions, please contact Len Green lgreen@greenco.com or Jim Benkoil jbenkoil@greenco.com at The Green Group or call us at 732.634.5100.

The post Proven Strategies: If You are an Independent Contractor, What Tax Deductions Are You Entitled to? appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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