# I want to lease a horse but the owner/business will not complete a W-9



## Learner (9 mo ago)

We are kind of new and struggling to be legal.
Do any other horse businesses pay taxes? 
We pay taxes on boarding and riding fees. But there seems to be some resistance among the broader equine community to comply with new 1099 reporting requirements. Our conversations with the dreaded IRS tell us we are liable for not reporting payments to vendors. Also if we do business, over 600 per annum, without clarification of the vendor status we may be penalized. 
Any thoughts or experience.


----------



## Dreamcatcher Arabians (Nov 14, 2010)

Unless you are using the expenses in a horse business, they are not deductible on your taxes so you don't need a W9 or to 1099 the owner of the horse. Horse services (boarding, training, farrier) are all services only, you're not purchasing supplies or goods of any kind. It's touchy and I fight with my CPA yearly about it but thus far, I've won. Most horse folks who are not selling you goods will not give you their tax info. They figure their income and the reporting of it is between them and the IRS.


----------



## My Salty Pony (Jan 1, 2022)

Have you done business with the owner of this horse before?


----------



## Learner (9 mo ago)

Dreamcatcher Arabians said:


> Unless you are using the expenses in a horse business, they are not deductible on your taxes so you don't need a W9 or to 1099 the owner of the horse. Horse services (boarding, training, farrier) are all services only, you're not purchasing supplies or goods of any kind. It's touchy and I fight with my CPA yearly about it but thus far, I've won. Most horse folks who are not selling you goods will not give you their tax info. They figure their income and the reporting of it is between them and the IRS.


Sorry tried to outline that we are a business. IRS explicitly told us we were obligated to report the lease expenses via a 1099. We do not want to face IRS penalties and have been issuing 1099s to all vendors with payments > 600 USD. Winning many vendors to read and complete the self-assessment process of certifying their legal structure via the W-9. We are avoiding those who do not care to comply with the IRS. No 'under the table' deals for our company!


----------



## Dreamcatcher Arabians (Nov 14, 2010)

Learner said:


> Sorry tried to outline that we are a business. IRS explicitly told us we were obligated to report the lease expenses via a 1099. We do not want to face IRS penalties and have been issuing 1099s to all vendors with payments > 600 USD. Winning many vendors to read and complete the self-assessment process of certifying their legal structure via the W-9. We are avoiding those who do not care to comply with the IRS. No 'under the table' deals for our company!


Ok, in that case, all you can really do is ask them to refund your deposit as you will not proceed with the lease if they decline to give you the proper documentation required for the IRS. If they won't refund your money, then your only recourse would be small claims court.


----------



## Learner (9 mo ago)

Dreamcatcher Arabians said:


> Ok, in that case, all you can really do is ask them to refund your deposit as you will not proceed with the lease if they decline to give you the proper documentation required for the IRS. If they won't refund your money, then your only recourse would be small claims court.


Thank you for identifying an actionable recourse. From now on I will need to research the Equine statutes of the sellor/lesssor to gird myself for a bad outcome. Will I need to file in the state of the lessor?


----------



## Dreamcatcher Arabians (Nov 14, 2010)

Learner said:


> Thank you for identifying an actionable recourse. From now on I will need to research the Equine statutes of the sellor/lesssor to gird myself for a bad outcome. Will I need to file in the state of the lessor?


Do you have any kind of contract? That usually will stipulate where the filing should take place. If not, then I'd call your local small claims court and find out. I'm thinking because you paid, so initiated the action in your state/county, you would file in your small claims court. Not an attorney and haven't had to file, so I am not an authority on this. I'm assuming your deposit was less than $5K, which is why I'm saying small claims. If over, then contact an attorney.


----------

