3 Common
Tax Mistakes Farriers Make

A farrier’s mobile workshop creates accounting and tax issues that can easily be overlooked—from specialized equipment and vehicle expenses to California depreciation differences and sales-tax obligations.

Our experienced CPA firm understands the accounting and tax issues affecting the equine industry and professional farriers. We can help you identify lawful tax-planning opportunities, meet your compliance obligations, and make informed financial decisions. Tax treatment and outcomes depend on each client’s individual circumstances.

Here are three common issues professional farriers should consider: 

1. Overlooking the De Minimis Safe Harbor

Eligible businesses may elect to deduct qualifying tools and equipment costing up to $2,500 per invoice or item rather than capitalizing and depreciating them. Specific recordkeeping, accounting-policy, and tax-return requirements apply.

2. Overlooking Federal and Multistate Depreciation Differences

State tax rules do not always follow federal depreciation provisions. California and some other states limit or disallow certain federal deductions, including bonus depreciation, while others conform more closely to federal law. Farriers operating or filing returns in multiple states may need separate depreciation schedules and state-specific adjustments to avoid reporting errors or unexpected tax liabilities.

3. Misclassifying Sales and Service Revenue

Charges for trimming and other services may be treated differently from sales of pads, treatments, or other tangible products. The correct sales-tax treatment—and applicable district tax—depends on what is sold, how it is invoiced, and where the transaction occurs.

Don’t let one-size-fits-all tax preparation overlook the details of your farrier business. Email us at info@llopezcpa.com or call 650-361-1235, extension 3, to discuss whether our firm would be a great fit for you!