Archive for January, 2013

Abilene Spectacular Open champs reward new owners

Monday, January 7th, 2013

Overdrive just prior to Husby Dispersal. Sally Harrison photo

Recent sale toppers Stylish Martini and Overdrive proved solid investments with championship wins in this week’s 2013 Abilene Cutting Spectacular.

Overdrive, making his open debut under Paul Hansma, scored 221 points to earn $20,000 for his Abilene Futurity title and an additional $10,000 incentive bonus. The 4-year-old gelding, sired by Hydrive Cat and trained by Clint Allen, belongs to Dub and Christy Leeth, Cleburne,Tex., who purchased him for $72,000 at the Husby Cutting Horses Complete Dispersal, produced by Western Bloodstock, on September 26, 2012, in Weatherford, Tex.

Stylish Martini, with $215,595 in lifetime earnings, collected another $14,000 for her 227-point Classic Open win under Clint Allen. The 6-year-old Docs Stylish Oak daughter, trained and previously shown in open competition by Roger Wagner, was purchased for $700,000 by Dottie Hill, Glen Rose, Tex., at the October 20, 2012 Marvine Ranch Reduction Sale, produced by Western Bloodstock. The purchase price was an all-time record for a cutting show horse at auction.

Allen also tied for seventh in the Classic with Katz Flash, owned by leading breeder Jack Waggoner, and 19th with Blue One Time, who topped the Husby Dispersal at $220,000 and is owned by Victor Cattle Co. Our Gray Goose, sixth in the Abilene Spectacular Futurity, owned by Gary and Shannon Barker, was also ridden by Allen.

TGI Playtime, shown by Skip Queen for Carroll’s Cutting LLC, scored 220.5 points as reserve champion to Overdrive in the Abilene Spectacular Futurity. Reyhanna, shown by Tatum Rice for Kevin and Sydney Knight, placed third with 220 points.

In the Classic, Moms Stilish Cat and Jeremy Barwick claimed reserve with 221 points for Taylor Carbo, and CR Sun Reys, with Boyd Rice, placed third with 220.5 points for Center Ranch.

The Abilene Spectacular continues through Saturday, January 12.

Fiscal Cliff legislation reinstates and increases investment incentives for horse owners

Saturday, January 5th, 2013

The fiscal cliff tax legislation passed by Congress and signed by President Obama earlier this week reinstated an important business investment incentive and substantially increased another incentive program. Both incentive programs could have important implications for purchasers of horses, farm equipment and most other depreciable property in 2013.

As a result of the new legislation, bonus depreciation will be reinstated at 50%, just as it was in 2012. The expense allowance will be increased to $500,000 in 2013 and retroactively increased from $125,000 to $500,000 for property purchased in 2012.

Bonus depreciation applies only to new property whose original use begins with the taxpayer. All such property must be purchased and placed in service prior to January 1, 2014. A yearling can be an example of a “new” horse purchase.

The $500,000 expense allowance applies to new or used property purchased in 2012 or 2013 and can be used to reduce taxable income derived from the horse business or any other business from which the taxpayer has income. A broodmare is an example of a “used” horse.

Also, accelerated depreciation for young racehorses continues through 2013. This means that taxpayers can depreciate racehorses that are 24 months and younger when purchased and placed in service using a 3-year schedule rather than the previous 7-year schedule. Taxpayers may use this accelerated schedule on any remaining balance that is not written off when taking bonus depreciation and/or the expense allowance.

“The reinstatement of bonus depreciation and the increase in the expense allowance are good news for horse owners and breeders,” said Alex Waldrop, President and CEO of the NTRA. “2013 will be a great year to purchase a Thoroughbred or farm equipment from a tax perspective. The NTRA legislative team will continue its efforts to extend these and other benefits even further to stimulate investment in the Thoroughbred industry.“

The NTRA is a broad-based coalition of horse racing interests consisting of leading Thoroughbred racetracks, owners, breeders, trainers, horseplayers and affiliated horse racing associations, charged with increasing the popularity of horse racing and improving economic conditions for industry participants. The NTRA has offices in Lexington, Ky., and New York City. NTRA press releases appear on the NTRA web site, NTRA.com.

Making Money with Western Horses

Wednesday, January 2nd, 2013

Recently I came across a few treasures at an antique mall – dated but timeless books about horses, including George Tyler’s guide to the economics of the Western horse business.

Making money with Western horses?

Sixteen-year-old George Tyler did in 1926, when he borrowed $35 to buy a green 3-year-old gelding. Tyler put “a little handle” on the horse and sold it a few months later for $100.

“That is when I learned the most important thing about making money with horses,” noted Tyler of that early experience. “Get a horse well-broke, get him looking good and somebody will want to buy him from you.”

One horse led to another for the Gainesville, Texas cowboy and by the time he wrote “Making Money with Western Horses,” in 1964 with journalist Bob Gray, he was an acknowledged expert on buying, selling, and showing Quarter Horses. “He was the smartest horseman I ever knew,” said Matlock Rose, the legendary cutting horse trainer and Tyler’s partner in the 1950’s.

Over the years, Tyler’s partners and clientele included King Ranch, Waggoner 3-D Ranch, Hank Wiescamp, Gordon B. Howell, Lester Goodson, Rex Cauble and B.F. Phillips, Jr. He also served as ring steward for the Fort Worth Livestock Show and Rodeo for 25 years, and at one time single-handedly judged the entire American Quarter Horse Congress in Columbus, Ohio.

George Tyler

Here are a few of Tyler’s words of wisdom from “Making Money with Western Horses“:

Everybody knows the price of an old $65 horse or mule, but nobody knows what a good horse or mule might bring.

Never look at the good things about a horse. They will take care of themselves. Look for the things you don’t like and weigh them in your mind. Once you own that horse, you have got to live with those bad points.

You will gain more, in prestige as well as dollars, from three outstanding horses than from 50 mediocre horses.

If you get the “big eye” on a horse, that is, if you start liking him too much, you are liable to have trouble making money from the animal.

I’ve never been to a sale in my life where there weren’t some bargains. If nobody else buys those bargains, I’m going to do it.

Tyler died in 1983 and was inducted into the AQHA Hall of Fame in 1998.