So we are going to have to
pay taxes on our horses earnings for that year or over all? I wouldn’t think it would make
sense to pay taxes on earnings that weren’t made by my stable. But if your just taxing the
earnings made my my stable for that particular year it makes perfect sense.
Taxes will be based on that
year’s earnings only.
I have no problem with the concept of taxing only earnings when the
horse was owned by you, but the logistics of this is horrendous. The database is already
pushing 20MB in size (total size limit on the server for everything, files/database/etc, is
only 50MB), and I really don’t want to put another table in with massive info on what horse
earned what and with what stable. (Same with studs/broodmares/etc).
I C, so would just a flat
rate be more reasonable? Maybe horses with a particular amount of earnings would be taxed
more. Like have a seperate tax braket except for the horses…for example
Horses with
earnings of $0-$15,000–>500
$15,001-$25,000–>1,000
$25,001-$50,000–>2,000
etc. etc…what about something like that???
And of course it would be more but maybe you could integrate the living expenses and
training of the racehorses for the year into this also. Like increase it by 5,000 for each
horse ontop of their earning bracket. So it would be 5,500 for the first bracket 6,000 for
the second and so on…
Except then you still run
into the same problem…you buy a horse like King David in the select auction (Note: he is
not going to the select auction, so don’t ask )…he’s
already earned over $1 million and it’s only March, so theoretically he’d reach at
least $2 million by September…say he earns another $200,000 for you after you buy
him in September. Since he’s earned $2.5mil or so by this point, you get taxed, say,
$200,000. That means that you basically shelled out however much for him AND he earned
you nothing since everything he earned for you had to go towards taxes because his race
earnings were so high.
See what I mean?
(i edited my post, wasn’t
sure you saw)
hmmmm…yes i see what your saying maybe you could still do the racehorse tax
bracket thing but for the earnings that he/she earned for that stable. I guess it’s the
same thing though because you’d just be replacing a percentage with a
bracket…hmmm…unless the taxes are taken out after the horse runs the race. Maybe make
something that will take a percentage out of the horses earnings before they even get into
the stable budget, that way you won’t even have to worry about this and we won’t be in such
money shock at the end of the year…
I think that taxes on what
they earned for you is fair. Was going to say something else to elaborate on my reasoning but
I kinda lost my thought train thingo…
OK…updates:
For
broodmares/foals…whoever will own the foal at the time of birth will pay the BM tax. So if
you sell a mare w/o her next foal, the new owner pays no tax, since that mare basically just
sits around in a field, has a baby, and then the baby’s shipped off to the old owner (who
would pay the stud fee tax on the mare for the year).
Same thing for leased
horses…whoever gets the benefit pays the tax.
Also, there
is another new tax: Sales tax. At the end of the year, you will be charged 5% of the total
income from horse sales for the year.
And another update/clarification: For the "newbie
rule" you take the lesser value of the % tax vs. the flat rate.
For anyone else, you take the higher value…so if you have a
bunch of racers who never earn anything in the year, you still have to pay the flat fee on
them to account for training/board/vet fees, etc.
Haha, I was waiting for the
sales tax! Damn… There goes 5% of the earnings from my annual sale…
Hey, can we buy
insurance for our horses? Cos if a good broodmare dies or a good horse conks out on the track
it kinda sucks…
Andrea
29
Very sentimental way of
putting it, and the answer for now is “no.” Don’t expect it to change anytime soon. Too
much else we need/want to add.
(Though of course if you randomly want to give FF large
portions of your money, feel free. You just won’t ever get anything back).