Bloodlines Presented By Diamond B Farm’s Rowayton: The Long, Strange Journey Of Bodexpress

The wayward colt who was once known as “America's favorite maiden” is now a Grade 1 winner after his victory in the Clark Handicap at Churchill Downs on Nov. 27.

Bodexpress (by Bodemeister) had taken his first experience in a Grade 1, last year in the Florida Derby, so well that he finished second in the race behind eventual division leader Maximum Security, and great things were expected of the handsome bay who had leapt so quickly to national prominence. Breeders, fans, and the colt's connections shared that optimism.

As a result, Bodexpress trained up to the classics without a start and was still a maiden when he went to the Kentucky Derby. There, he was racing prominently about a quarter-mile from home when taken up sharply as part of the chain reaction from the Maximum Security incident, then was placed 13th in the initial 2019 classic. That placement in an exceptionally rough race did not deter the colt's connections from trying the Preakness, and Bodexpress heightened the drama by dropping his jock, John Velazquez, at the start, then racing prominently through the rest of the 9 1/2-furlong race.

Riderless but not reckless, Bodexpress did not cause any trouble in the Preakness, just disappointment among his supporters.

The magnificent maiden went to a maiden special for his return in October 2019 and won his first race, then returned to win an allowance and was third in the G3 Harlan's Holiday in December. Unplaced in the G1 Pegasus World Cup and the G2 Gulfstream Park Mile, Bodexpress then finished third in the G3 Hal's Hope Stakes at Gulfstream, the Alydar Stakes at Saratoga, and he was second in an allowance at Churchill before killing a field by 11 1/4 lengths at Gulfstream Park West prior to the Clark.

Bred in Kentucky by Martha Jane Mulholland, Bodexpress was sold at the 2017 Keeneland September yearling sale. Although the good-looking colt went through the ring and was bought back for $45,000, he sold privately shortly thereafter.

John Mulholland recalled that “Bode was a little small, and we had to do a stifle surgery four or five weeks before the September sale. It was bad timing but also drew a knock from vets; so we sold him privately for about the hammer price.”

The buyer was Global Thoroughbreds through J.R. Boyd of Brick City Thoroughbreds, “which took him to Florida for breaking and early training,” Mulholland recalled.

J.R. Boyd said, “I'd liked this colt when I'd seen him at the farm before, and we were a little hesitant to buy a Bodemeister, but we love to shop with the Mulhollands because Martha Jane and John Henry are always up front and candid about their horses, and they raise a really good horse.

“The first reason I wanted to see this colt was that we'd trained his half-brother by Stormy Atlantic,” Boyd said, “and he was a really nice horse. Then, Bodexpress was such a pretty individual who looked like he could become a really good athlete. When I showed Bodexpress to our client at the sale, the owner of Global made the decision to buy the colt. He was that nice.”

Once Boyd and his wife Katie put Bodexpress into training, the colt “was a phenomenal mover, just a really nice colt.” But once again, ill luck showed up.

Boyd said, “We wanted to showcase him, put him in the Fasig sale in Miami or OBS March, but he banged his knee, and when I called Global, they said to be patient, give Bodexpress all the time that the colt needed, and so, Maryland was the spot for him.

“Our clients at Global Thoroughbreds are very game; if there's a hiccup along the way, they don't mind racing one, but they do like to offer everything for sale. At the Timonium sale in Maryland, I tried to tell everyone at the sales how good this colt was, but it was almost like Bodemeister had a disease. Nobody wanted one. I told the gentlemen behind the colt that we weren't likely to get what the colt was worth.

“Their answer to me was: 'Put a $37,000 reserve, and if someone wants to take him at $40,000, he sells. We want people to know that Global Thoroughbreds is willing to put reasonable reserves and sell their horses.”

The bright bay didn't sell, shipped home, was given a month to relax from the sale, then shipped to trainer Gustavo Delgado, who's had the horse ever since.

The good-looking colt never seemed to take things the easy way. He initially missed winning a maiden, although his fourth outing in that condition brought a narrow loss to Shancelot (Shanghai Bobby), who is a Grade 2 winner and finished second in the G1 Breeders' Cup Sprint.

Bodexpress's fifth start was the G1 Florida Derby, which appeared to be a giant step up, and there, the luckless colt ran into the buzz saw named Maximum Security.

Mulholland Springs has not participated in the luck of Bodexpress, either. The farm had worked with a pair of yearlings from the mare that “I had liked but not loved,” Mulholland noted, and then the mare had gone barren in 2016 after foaling Bodexpress. So, at the Keeneland November sale of 2017, the farm sold the colt's dam, the City Zip mare Pied a Terre, for $17,000.

Mulholland said, “She was a nice-looking mare, or I wouldn't have bought her,” but the commercial market wasn't very responsive to her foals. So, in foal to the Tiznow stallion Gemologist, Mulholland Springs sold the mare, and the purchaser was the KOID, which exported her to Korea.

On March 28, 2018, Pied a Terre foaled a filly by Gemologist who's since been named Gangseo Princess, and in 2019, the mare foaled a colt by the Tapit stallion Concord Point and was barren for 2020 on a cover to Take Charge Indy.

Bodexpress is the second Grade 1 winner for his sire, Kentucky Derby runner-up Bodemeister (Empire Maker), after Kentucky Derby winner Always Dreaming, who stood his first season at stud in Kentucky at WinStar Farm in 2019.

In the fall of 2019, WinStar announced the sale of Bodemeister to the Jockey Club of Turkey, and the horse stands at their stud farm outside Istanbul for a fee of 12,500 euros, approximately $15,000.

The post Bloodlines Presented By Diamond B Farm’s Rowayton: The Long, Strange Journey Of Bodexpress appeared first on Horse Racing News | Paulick Report.

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Indiana Grand Donates to Cancer Relief

Indiana Grand Racing & Casino recently donated $5,000 to the Cancer Association of Shelby County, which provides assistance to patients currently fighting cancer. The Cancer Association of Shelby County was unable to hold its major fundraiser this year due to COVID-19 restrictions. The donation, part of Indiana Grand’s year-end initiative to give back to the local community, was made during a special presentation at the track.

“We have many team members that have battled cancer in the past or are currently dealing with the disease,” said Elena Lisle, Indiana Grand’s vice president of marketing. “We have recently lost a few fellow team members to cancer, and the impact of losing a loved one is a tremendous blow to any family, including a work family. Being able to step up and provide any assistance is so important and we are glad to help out in any way we can.”

The post Indiana Grand Donates to Cancer Relief appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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Proven Strategies: End-of-Year Tax-Saving Tips

In horse racing, the contest is not over until the horse crosses the finish line.

The same is true with maximizing your tax deductions and minimizing your taxes.

For those who think it is too late to save on your 2020 taxes, we are here to tell you, it is not!

With over 40 years’ experience saving our clients taxes along with our knowledge of the new tax laws, we are confident the following information will help you as you approach the 2020 home stretch and allow you to hit the wire a winner.

Current Tax Act and What it Means to The Horse Industry

The Current Tax Act contains favorable developments for depreciating and expensing yearlings, breeding stock, farm equipment and other property.

Bonus Depreciation: An increase in bonus depreciation allows a write-off to increase from 50% to 100%. Accordingly, you are now permitted to fully expense purchases in the first year for yearlings, breeding stock and farm equipment. Used property can now qualify also. A few weeks still remain for 2020 asset additions with the potential benefit of a full tax write-off.

IRC&179 Deduction: The maximum amount that may be expensed has been increased from $500,000 to $1 million. The phase-out threshold has been increased from $2 million to $2.5 million.

Farm Equipment: The useful life has been reduced from seven years to five years and the 200% declining balance method can now be used.

Racehorses: Certain Thoroughbreds can still be depreciated as three-year property.

Even if business equipment (or horses) is purchased before year-end, they still qualify for these tax benefits.

2020 Year-End Tax Planning Strategies

Due to the transition of administration in our nation’s capital and the uncertainty of whether or not proposed tax law changes will be forthcoming, year-end tax planning for 2020 is more important than ever.

Steps Available for Individual Taxpayers

  1. Capital Gains: President-elect Biden is proposing an increase from 20% to 39.6% on capital gains for taxpayers with income above $1 million. Accordingly, if you are contemplating a sale of horses or real estate, you should consider accelerating the transaction into 2020 rather than waiting until 2021.

Even for taxpayers with income below the $1-million threshold, if you have realized capital gains in 2020, along with unrealized losses, you might want to trigger those losses before year-end to offset your gains, thereby reducing your tax liability.

On the flip side, if you have realized losses, consider taking some gains, as the deduction for capital losses is limited to $3,000 in any given year.

  1. Retirement Plan Alerts: Several relief measures are included in recent tax legislation to help individuals who are approaching retirement or facing financial concerns.

First, required minimum distributions are suspended for Year 2020. As a result, if you do not have a financial need to take a distribution in 2020, you do not need to do so. Leave the money in the Pension Plan and continue to have it accumulate value, tax free.

Second, plan participants who turn 70 1/2 in 2020 or later do not need to take required distributions until the year in which they turn 72.

Third, you are now permitted to contribute to a traditional IRA after age 70 1/2 as long as you have earned income.

Fourth, the 10% early withdrawal penalty for distributions of up to $100,000 from workplace retirement plans will be waived for individuals who either become ill or lose their employment. These distributions can be spread over three years, and individuals can recontribute all, or a portion, to avoid a penalty.

Fifth, contributions to a Keogh plan or a one-person 401(k) plan can be significant and save you substantial 2020 tax dollars if set up before Dec. 31, 2020.

A SEP-IRA is another flexible alternative. A SEP can be set up before the filling date of your 2020 tax return, yet still provide you with a 2020 deduction.

  1. Avoid the Underpayment of Estimated Tax Penalty: If you have not prepared a 2020 income tax projection, you should have your advisor do so. If your 2020 projection shows a balance due, request that a disproportionate amount of withholding be taken from your December paychecks, year-end bonus, or retirement plan distribution, rather than paying a comparable significant amount with a fourth-quarter estimated tax voucher.

This withholding approach is more favorable than writing a check because taxes that are withheld in December are deemed to be “thrown back” and treated as evenly spread through the calendar year. This enables you to catch up on any shortfall and still avoid a penalty for the first three quarters.

  1. Net Operating Losses (NOLs): Recent tax legislation temporarily reverses the rules enacted in 2017 which preclude the carryback of NOLs. Individuals with NOLs arising in 2018, 2019 and 2020 can now carry back their NOLs five years.

Of great importance, business losses, which had been capped at $250,000 for single taxpayers and $500,00 for joint returns, can be deducted without limitation through 2020!

  1. Maximize the Pass-Through Business Income Deduction: This tax-saving deduction allows certain taxpayers to deduct 20% of their qualified business income. To maximize the deduction, you should take action steps to qualify your taxable income so it is below this new provision’s phase-out thresholds.

Steps Available for Business Taxpayers

  1. Tax Treatment of Losses: Corporations can once again carry back NOLs, at least for losses arising in 2018 through 2020. Tax rule changes in December of 2017 had put a stop to this practice. Recent tax legislation reinstates this benefit and the carryback period is five years. Another temporary change is that corporations can now use NOLs to offset their entire taxable income through the 2020 tax year. The 2017 Tax Act’s 80% limitation has been temporarily removed.
  2. Maximize Available Depreciation: Businesses should consider making expenditures that qualify for 100% first-year bonus depreciation. Generally, both new and used depreciable assets are eligible. The full first-year write-off is allowed even if the asset is purchased late in the year and even if the deduction gives rise to a taxable loss.

Also, make sure you are taking bonus depreciation on all assets that are eligible. Many times assets are missed as to leasehold improvements on horses purchased in overseas sales or horses put into training but not yet raced.

An alternative is Section 179 depreciation, where for 2020 the expense limit has been raised to $1,040,000 if the investment purchases do not exceed $2,590,000. Keep in mind that Section 179 expensing cannot give rise to a loss.

  1. Qualified Business Income (QBI) Deduction: Certain business owners may be entitled to a deduction of up to 20% of their qualified business income. You should take whatever steps are possible to keep your taxable income below the phase-out thresholds. The rules are complex, so contact your tax advisor so they can help you maximize the use of the QBI deduction.

Possible Tax Law Changes Proposed by the Biden Administration

The best way to sum up President-elect Joe Biden’s tax plan would be to say he wants to raise taxes on high-income households and corporations.

  • Increase the corporate tax rate: The existing tax plan lowered the corporate rate from 35% to 21%. While Biden’s camp generally agrees 35% was too high, their proposal is to raise it to 28%.
  • Increase taxes on high earners: Biden would restore the 39.6% top marginal tax rate that was in effect prior to the 2018 tax year.
  • Phase out the pass-through deduction: Biden would phase out the 20% Qualified Business Income (QBI) deduction for taxpayers earning $400,000 or more.
  • Increase capital gains tax on high earners: Currently capital gains enjoy lower tax rates than ordinary income, but Biden’s proposal would change this for taxpayers earning more than $1 million.
  • Increase Social Security taxes: Biden would increase revenue to Social Security by imposing the 12.4% payroll tax (half of which is paid by the taxpayer) on all income above $400,000 in addition to the current structure of the tax.
  • Changes in estate planning: This portion of the proposed plan is less straightforward. On the one hand, you have the estate tax exemption of $11.58 million being reduced by 50%. On the other hand, there is less clarity regarding important items such as step-up in basis, business asset exemptions, capital gains, etc.

Clearly there will be changes, adjustments and alterations during the negotiation period prior to any changes being implemented. Also note that it is highly unlikely that any new laws will be made retroactively to 2020. Our best advice is to keep an open line of communication with your tax and financial advisors prior to making any updates to your estate planning.

The Green Group welcomes the opportunity to discuss your 2020 year-end tax-saving strategies with you by phone at 732.634.5100. In the meantime, stay well.

The post Proven Strategies: End-of-Year Tax-Saving Tips appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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Can Keepmeinmind Stay in the 2021 Kentucky Derby Picture?

Making the Grade, which will run through the 2021 Triple Crown races, focuses on the winners or top performers of the key races, usually from the previous weekend, who could make an impact on the Triple Crown. We’ll be taking a close look at impressive winners and evaluating their chances to win classic races based upon ability, running style, connections (owner, trainer, jockey), and pedigree.

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