Key Tax Considerations for Horse Farm Owners in Ocala

Beyond the primary tax deductions outlined in last week blog: Discover the Tax Benefits of Horse Ownership in 2025, horse farm owners should be aware of the following considerations to further optimize their tax strategy:

1. Agricultural Tax Exemptions and Benefits

In states like Florida, horse farms may qualify for agricultural tax exemptions on property taxes. This often requires proving that the land is actively being used for agricultural purposes such as breeding, boarding, or training. Contacting your county property appraiser’s office can help determine eligibility.

2. Sales Tax Exemptions on Feed and Equipment

Some states offer sales tax exemptions on livestock feed, veterinary medicines, and equipment used for agricultural purposes. Ensuring proper documentation and exemption certificates can lead to significant savings.

3. Conservation and Land Use Tax Incentives

Farmers and landowners who participate in conservation programs or maintain land for equestrian use may qualify for conservation easements or tax credits designed to preserve farmland and open spaces.

Recent Tax Law Updates Impacting Horse Farms

Tax laws evolve, and it’s essential to stay updated on changes that may impact equestrian businesses. Some recent updates include:

• Modification of Bonus Depreciation – The ability to claim 100% bonus depreciation on qualifying business assets is phasing down. For tax year 2024, the bonus depreciation rate drops to 80%, with further reductions expected in coming years.

• Updated Standard Mileage Rates – If you use personal vehicles for business-related horse activities, keep an eye on IRS updates to standard mileage deduction rates.

• IRS Crackdown on Hobby Losses – The IRS is increasingly scrutinizing businesses that report consistent losses. Horse farms should maintain detailed financial records and demonstrate efforts to generate a profit to ensure tax compliance.

For further reading on equestrian tax laws, check out:

• IRS Publication 225 (Farmer’s Tax Guide): www.irs.gov

• Journal of Accountancy (Tax Considerations for Horse Owners): www.journalofaccountancy.com

• Agricultural Tax Resources: www.agriculture.com

Final Thoughts

Navigating tax deductions for horse farms can be complex, but taking advantage of available tax benefits can significantly reduce your tax burden. Whether you're operating a large-scale breeding facility or a small equestrian business, working with an experienced accountant is crucial to staying compliant and maximizing savings.

📩 Need expert equestrian tax guidance? Damas Tax Advisors is here to help horse farm owners in Ocala and beyond navigate tax planning, compliance, and financial strategy. Contact us today to schedule a consultation!