OwnerView Webinar Covers Accounting, Legal and Insurance Considerations

[Wandering Eyes]

The OwnerView Webinar series for 2025 kicked off Mar. 11 with a discussion of accounting, legal and insurance considerations affecting Thoroughbred owners.

Gary Falter, project manager for OwnerView, was the moderator of a panel that included Chapman Hopkins, chair of Stoll Keenon Ogden's Equine Litigation group; Joe Daugherty, public accountant for Dean Dorton, leading their equine tax practice; and Mike Levy, founder of Muirfield Insurance.

A discussion of equine accounting, including tax changes and the implications on Thoroughbred ownership, kicked off the webinar.

“The two questions you need to ask is what kind of property are we dealing with and do I want to own it myself or do I want to own it with someone else?” replied Daugherty when discussing tax considerations for an owner buying a horse or a farm, and how that would be structured.

Addressing the importance of accounting methods, Daugherty added: “I would say that most horse owners qualify to use the cash basis method. That's usually the preferred accounting method, because it accelerates deductions for income tax purposes.”

Among the items discussed by Hopkins was what owners should be aware of as regards the legalities of becoming a horse owner.

“The starting point for me, especially with any new clients, new owners, is getting into a mindset that the equine business really needs to be treated just like any other business,” Hopkins said. “If I could identify three things that I would keep at the forefront of my mind, they'd probably be contractual considerations, regulatory components and then just general liability.”

Levy pointed out that mortality insurance is the most common form of equine insurance. He emphasized that personal umbrella policies do not cover equine-related claims, a point with which Hopkins concurred.

The panel also discussed the void claim rule, which applies to every track that operates under the Horseracing Integrity and Safety Act rules.

“This is a very, very good rule. It encourages participation and it alleviates ambiguities or uncertainties, especially for people that are new in the game,” Levy said.

Nine additional virtual panels are scheduled for 2024. The next session, entitled 'Owners First' takes place Apr. 8 at 2 p.m. ET. The full schedule can be found here.

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