Actually, I was being facetious.
Now that the holidays are past, it's time to get ready for the US government's post-Christmas bonus.
I think this is an especially traumatic time for people in the horse business, which recognized as a real business by the IRS only after a laundry-list of requirements. I guess we aren't quite stressed enough during foaling season....
I am far from being an tax expert. Even though I work in finance, my B.A. is in English Literature. I'm lucky enough to understand what I read, but I'd never take advice from someone like me and if you're still reading, you don't have to, either.
One thing I am good at is research, so here's a list of links that do a much better job of explaining income tax implications for people in the horse business than I ever could:
Business Plan Checklist: http://www.horsecity.com/cgi-bin/printme.pl?prev
Hobby versus Business: http://www.horsecity.com/stories/070902/law_hobby_PH.shtml
Hobby Loss Audit info: http://www.queryhorse.com/toppages/articles/horseownertaxtips.asp
Stallings Paint Horses - Tax Planning for Horses (this was one of the first sites I found years ago that really helped explain in horse owner terms what my accountant had been trying to tell me in CPA terms: http://www.stallingspainthorses.com/tax1.html
I hope these links help! For those readers not in the US (or for those in the US but need a break from their hours of tax work), here's one final link for ya!