Taxing Times Indeed

OK, I'm struggling to get my taxes completed for 2010. If there is an accountant out there that understands how stallions are taxed, please give me a call here at Foot Fall Farm. Calculators and hooves just don't mix well. Thankfully, the deadline this year is April 18th instead of the 15th so I have a few more days. I'm also not sure where I'm going to come up with the money to pay what I appear to owe. According to The Blood-Horse General Sire List for 2010, I earned $1,143,803, and to be honest, I cannot remember ever receiving a dime of this money. (However, when I do get some coin, I usually lose it since I don't have any pockets.) Now, Little Mike is listed as my Chief Earner with $145,350 so I sent him a 1099. Let the kid pay the tax on that amount. Sorry, Mikey. This still leaves me with $1 million in earnings. Once I take the normal deductions for a great-looking stallion, do some cyphering, carry the naught, I have calculated out that I owe about $1,500 in federal taxes.

At the same time, evidently, I have to pay my first quarterly estimate according to the IRS notice that I just received. I've heard they are cracking down on million dollar earners. As I look at The Blood-Horse General Sire List for 2011, I've already earned $445,417 this year!! OK, another 1099 to Little Mike helps, but still another payment of around $500. My total cash need is $2,000! With my first crop here in Indiana just hitting the ground, and they are beautiful, I won't have any potential for stallion awards until late 2013. The IRS is not going to wait that long, and I can't have them garnishing my earnings.

Hmmm....what do I have that I could sell?.......Well, other than being great looking and having a great pedigree, the only other asset that I have is, well, you know. So, how about a few of you call my main man Eddie for a no guarantee contract or two? Help me pay my taxes! I know there are some mares out there that haven't made breeding plans for this season just yet. You know I'd be the perfect stallion as I'm producing winners on any surface and at any distance.

Actually, now that I think about it, I'm going to need more than a couple no guarantee seasons for my tax account as my earnings keep growing. Lydia's Last Step, one of my four year old geldings, led every step of the way today to win the Premiere Stakes at Lone Star Park which had a $50,000 purse. Way to go LLS!! This was his third win in a row with all of them coming at a mile on dirt. In fifteen starts, LLS now has six wins, three places and two shows. In each of the last three races, LLS was in front at every point of the call. Prior to today's race, LLS was claimed for $25,000 by Richard W Penn at Sunland Park. Nice claim Mr. Penn!!