For horse trainers — from small lesson barns to the A-circuit— know that while sharing their equine passion with their students is rewarding, the tax burden that comes with that freedom makes for a pretty frustrating ordeal. But, the truth is, taxes don’t have to be such a headache for horse trainers. In fact, by taking the right deductions, you can actually save thousands of dollars each year.
If you’re new to the world of deductions and aren’t sure where to start, don’t worry. The following are a few deductions we recommend every trainer take to save thousands on their taxes each year:
The Mileage Deduction
The mileage deduction is one of the most valuable deductions that you can take. By simply tracking your business mileage, you can save more than $10 per 20 business miles tracked. One helpful tool for tracking business mileage (and saving money) is Hurdlr’s built-in mileage tracker. The app helps trainers track their mileage, so they can maximize their deductions when tax time rolls around.
Wondering how the mileage deduction can work for you? Consider the case of barn manager and trainer, Christine. Between her training rides, lessons, and daily barn upkeep, Christine didn’t always remember to write down her business mileage. By tracking her mileage with Hurdlr, Christine has maximized her deductions, saving her over $4,000 on her taxes. Those are some pretty serious savings!
The Expense Deduction
While you may not be inclined to save your paper receipts for business or barn supplies, feed and shavings, trailering, (or whatever other business expense you have for your equestrian business), the expense deduction offers a major incentive to finally get those receipts in order. Deductible expenses are another excellent way that trainers can save thousands on their taxes. Tracking business expenses allows entrepreneurs like you to claim these valuable deductions and ultimately save money on their taxes.
Using Hurdlr, entrepreneurs can simply link their credit card to the app and it will automatically capture all of their expenses, so they never miss a deduction. For example, Amy is a lesson barn manager and uses Hurdlr to track her business expenses. By using the app, Amy can keep all of her expenses and receipts for her lesson horses and program in one place, so she can easily export a report for her accountant. While receipt-tracking isn’t the most fun thing in the world, the expense deduction makes your efforts worthwhile.
The Self-Employment Tax
When you’re self-employed, it’s critical to know how much to set aside for taxes. In order to avoid penalties, horse trainers and other entrepreneurs should make accurate quarterly tax payments each quarter. Of course, remembering to pay quarterly is easier said than done! But with Hurdlr’s tax estimates, which can help you know when and how much to pay for your quarterly taxes, you’ll never forget to pay your quarterly taxes again.
Interested in learning how Hurdlr can help you save thousands on your taxes?