THR... can't afford to keep the horses & worrying about tax?

[Heike]

Hi all

I was hoping someone could offer some advice, I’m due to have total hip replacement surgery done in a few weeks and I’ve been working out costs of not being able to work etc, and it won’t happen, I just will not have the money. I’m also thinking of maybe selling the horses so I’ll be able to work less hours and put less stress on myself, however i’m a little concerned about doing that - will I end up paying any tax on the sale, as they’re worth more now than what I paid for them? I’ve had a look at this salary tool and figure out how much I would pay on my current salary but totally confused and not sure what to do. Any help?:ambivalence:

Thanks!

[Huntin_Pony]

You should consult a financial expert and tax accountant. I am neither.

You may be able to add some of the cost of upkeep of the horses during the time you’ve owned them to the purchase price before calculating the profit, if any. ASK A TAX PRO.

[Janet]

For “hobby income”, you would pay tax on
(Sales Price - (Purchase Price + documented expenses for keeping the horse))

Unless it is a REALLY valuable horse, this is unlikely to be a positive number.