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March 13, 2021
Question

Tax treatment for Sale of a horse

  • March 13, 2021
  • 1 reply
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A college student sold a horse he had been riding and training for several years. His parents have a farm but he does not have a farm of his own. He used part of the proceeds for his living expenses and reinvested some in another horse to sell in the futures. Would the profit from the sale of the horse be recorded as personal investment income since he is not doing horse training as a full time profession?

    1 reply

    ColeenD3
    March 13, 2021

    Yes. It would be listed under "other". Another possibility would be hobby income, if this is something he intends to do, and he doesn't have a profit motive.