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Financial Checklist for California Horse Boarding Facilities Part 1

What Boarders, Trainers, and Stable Operators Should Know About the Money Behind the Barn

Running a horse boarding facility is much more than feeding horses, cleaning stalls, and maintaining fences. A successful equine operation also requires disciplined financial management, accurate records, properly structured agreements, and compliance with California tax and employment requirements.

For boarders and trainers, understanding the financial side of a boarding operation can help prevent surprises, clarify who is responsible for what, and create a healthier business relationship with the facility.

This checklist is designed for California equine boarding facilities, boarders, and trainers as a practical starting point for financial organization and compliance.

Important: This article is educational information, not legal or tax advice. California employment, tax, and professional-accounting requirements can vary depending on the structure and activities of a particular operation. A boarding facility should consult its California CPA, payroll professional, employment attorney, and/or other appropriate professional before relying on this checklist.

  1. Start With a Written Boarding Agreement

Every boarding relationship should begin with a clear written agreement.

At a minimum, the agreement should identify:

  • Boarder’s name and contact information
  • Horse’s registered or identifying name
  • Type of boarding provided
  • Monthly or periodic boarding fee
  • What services are included
  • What services are billed separately
  • Payment due date
  • Late-payment policy
  • Returned-payment fees, if applicable
  • Training, lesson, or exercise charges
  • Veterinary and farrier authorization procedures
  • Emergency-care procedures
  • Responsibility for veterinary and other third-party expenses
  • Cancellation and termination provisions
  • Requirements for removing the horse from the facility
  • Insurance responsibilities
  • Facility rules and horse-care requirements

Financial best practice: Avoid relying on verbal promises regarding what is included in “board.”

For example, “full board” should be defined. Does it include hay? Grain? Supplements? Blanketing? Holding for the farrier? Medication administration? Turnout? Stall cleaning? What happens when a horse requires additional care?

A written agreement turns assumptions into documented expectations.

  1. Separate Boarding Revenue from Other Services

Boarding facilities frequently provide multiple services under one roof.

Your accounting system should distinguish among revenue categories such as:

  • Stall or pasture board
  • Training
  • Lessons
  • Exercise riding
  • Horse sales or commissions
  • Trailer parking
  • Layovers
  • Blanketing
  • Medication administration
  • Holding for veterinarian or farrier
  • Grooming
  • Clipping
  • Show preparation
  • Hauling
  • Facility rentals
  • Arena rentals
  • Clinics or events
  • Tack or equipment sales
  • Feed or other separately billed items

This is important because different types of charges can receive different accounting and tax treatment.

California’s Department of Tax and Fee Administration specifically addresses transactions involving boarding and training facilities. For example, when a facility charges a flat fee that includes feed, the facility generally is treated as the consumer of that feed; when taxable merchandise such as feed is separately itemized and sold to the customer, the facility may instead be acting as a retailer. (CDTFA)

Bottom line: Don’t assume that everything appearing on a boarding invoice receives the same tax treatment.

  1. Know Exactly What Is Included in the Monthly Board

A financially healthy facility should be able to explain the economics behind its board rate. For example:

Base Board

  • Stall or pasture
  • Hay/feed
  • Water
  • Stall cleaning
  • Basic turnout
  • Arena/facility access

Additional Services

  • Training rides
  • Lessons
  • Blanketing
  • Supplements
  • Medications
  • Special feeding
  • Holding for appointments
  • Grooming
  • Farrier handling
  • Veterinary handling
  • Emergency services

Boarders should receive an invoice or statement that makes it reasonably clear what they are paying for.

Facilities should also periodically review whether their board rate still covers the actual cost of providing services.

  1. Track the Real Cost of Hay and Feed

Feed costs can be one of the largest and most volatile expenses in an equine operation. Facilities should track:

  • Hay purchases
  • Grain and concentrates
  • Supplements
  • Bedding
  • Delivery charges
  • Storage losses
  • Waste
  • Price increases
  • Special dietary requirements

Consider calculating an approximate feed cost per horse per month.

This gives the operator a better basis for determining whether the current board rate remains economically sustainable.

For boarders, significant changes in feed prices may explain why a facility needs to modify its rates—but any increase should be handled according to the written boarding agreement and applicable law.

Treasury, IRS issue guidance on rollovers between retirement plans and individual retirement accounts

WASHINGTON, Aug, 2026 — The Department of the Treasury and the Internal Revenue Service today provided guidance to simplify and standardize the rollover process by issuing sample forms for direct rollovers to or from a retirement plan, as required under the SECURE 2.0 Act section 324.

Notice 2026-49 PDF provides sample forms and proposed rollover procedures and protocols that aim to simplify and standardize the rollover process for both participants and plan sponsors:

  • Scope: It applies to rollovers between retirement plans or between a retirement plan and an individual retirement account (IRA), but not to IRA-to-IRA transfers.
  • Design: The sample forms are designed to protect participants’ personal identifying information and minimize participants’ burden.
  • Optional use: Use of the sample forms and proposed procedures is optional for plan sponsors.

“The IRS continues to look for ways to make complying with tax law less difficult and confusing for taxpayers and to improve tax administration in this complex area of the law,” said IRS Chief Executive Officer Frank J. Bisignano. “The sample forms will make compliance simpler and easier for both plan participants and administrators.”

The Top 5 Tips for Extension Filers

Extension filers don’t have to wait until Oct. 15, 2026, to file their federal tax return. Taxpayers are encouraged not to wait and to take steps to help them prepare an accurate return. Let’s go over a few tips to make completing the return quick and easy.

Gather and review tax documents

Complete and accurate records can reduce errors and delays. Individual taxpayers can access their IRS Individual Online Account to view account information and transcripts, make payments, and manage communication preferences.

Use IRS Free File, if eligible

Taxpayers can see if they are eligible to file their return for free through IRS Free File. The program is available to taxpayers who had an adjusted gross income of $89,000 or less in 2025. IRS Free File is guided tax preparation and can help taxpayers determine their eligibility for many valuable tax credits.

IRS Free File Fillable Forms is available to taxpayers who are comfortable preparing and filing their own returns. Regardless of income level, taxpayers can still electronically file their returns at no cost.

Additionally, many Volunteer Income Tax Assistance and Tax Counseling for the Elderly still offer free basic tax return preparation to qualified individuals, including:

  • People who generally qualify for the Earned Income Tax Credit
  • Persons with disabilities
  • Limited English-speaking taxpayers

Know what to look for, if choosing a tax pro

Some may choose to use a tax professional to complete and file their return. A tip earlier this year, provides important tips when choosing a tax pro.

Don’t wait until the last minute

The extension to file is not an extension to pay. The deadline for extension filers is Oct. 15, 2026. Taxpayers should file electronically and choose direct deposit for their tax refund – it’s the fastest and safest way to receive their money.

Taxpayers in disaster areas may have more time to file. Information on the most recent tax relief for disaster situations is available on the IRS website.

Payment options

Those who owe taxes and can’t pay their balance in full should pay as much as they can to reduce interest and penalties for late payment. The IRS has options for people who can’t pay their taxes, including applying for a payment plan on IRS.gov. Taxpayers can view payment options or check their account balance online.

Enhanced Deduction for Seniors

There are some changes for the 2026 tax filing season that people who are 65 years of age and older should be aware of. The most recent being the enhanced deduction for seniors, which is a provision of the One, Big, Beautiful Bill.

The IRS is sharing what’s new, as well as some reminders specifically for seniors.

Enhanced deduction for seniors

A new deduction that is in addition to the current additional standard deduction for seniors under existing law.

  • For tax years 2025-2028, taxpayers who are age 65 or older may be eligible to claim an additional $6,000 deduction per person ($12,000 if married filing jointly and both spouses are eligible)
  • To be eligible, the person must be 65 on or before the last day of the tax year
  • It is available to eligible taxpayers who claim the standard deduction or itemize
  • The deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers)

Earned Income Tax Credit

  • EITC helps low to moderate-income workers and families get a tax break
  • The maximum income amount for claiming the credit for the 2025 tax year is $68,675. The amount of the credit may vary based on income, family size and filing status.

Equine Industry – Core Services Offered

Monthly Recurring Revenue

  • Bookkeeping packages 
  • Payroll processing 
  • Sales tax filing 
  • Financial reporting 
  • Advisory retainers 

Seasonal Revenue

  • Tax preparation 
  • Tax planning 
  • Entity structuring 
  • Audit support 
  • IRS/state notices 

Premium Advisory Services

  • Business growth consulting 
  • Profitability analysis 
  • Succession planning 
  • Inventory controls for tack/feed stores 
  • Cash flow forecasting 
  • QuickBooks setup and cleanup 

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!

Tax Scams Related to the One, Big, Beautiful Bill (Part 1)

The One, Big, Beautiful Bill introduces new and expanded tax benefits. While these changes may help taxpayers, they can also create confusion, especially during the first filing season when they apply. Scammers often exploit uncertainty surrounding new laws.

Taxpayers should watch for the following OBBB-related scams and take steps to protect their personal and financial information.

Ghost preparers exploiting new credits

Unlicensed or unethical tax preparers may promise large refunds by aggressively or falsely claiming new OBBB credits. These preparers may:

  • Exaggerate eligibility for deductions
  • Claim credits that taxpayers do not qualify for
  • Disappear after filing, leaving the taxpayer responsible for penalties, interest, or audits

Red Flag: The preparer refuses to sign the return or provide a valid Preparer Tax Identification Number.

Tips and overtime deduction scams

Dishonest tax preparers advertise “expert” help to claim the tip and overtime deductions, charging excessive fees and inflating amounts on returns. Common tactics include:

  • Promising unusually large refunds tied to tips or overtime
  • Guaranteeing eligibility
  • Inflating or inventing deduction amounts without proper documentation

OBBB provisions require accurate reporting of qualified tips and overtime. Because early information forms may not clearly reflect these amounts, scammers can exploit the complexity to justify improper claims.

Red Flag: The preparer will not explain how amounts were calculated, or claim documentation is unnecessary.

Deduction for seniors “enrollment” scam

The new OBBB deduction for seniors does not require enrollment, advance registration, or third-party sign-up. Eligible seniors can claim the deduction when filing their tax return with the IRS.

Scammers may target seniors through unsolicited calls, texts, emails, or mailers that claim they must:

  • Enroll immediately to receive the deduction
  • Verify personal information to qualify
  • Pay a processing or application fee
  • Click a link and provide their Social Security number or bank information

Red Flag: The preparer claims you must enroll, register, or pay a fee to receive the deduction. The IRS does not require “enrollment” or payment to claim a deduction.

Need To File An Amended Return?

IRS Tax Tip 2026-35, April 28, 2026

Taxpayers who discover an error after filing a federal tax return may need to file an amended return. There are some instances where an amended return isn’t required such as when the IRS corrects errors during processing or requests missing forms or schedules separately.

Reasons to file an amended return

If there are changes to key items on the original return, including:

  • Filing status
  • Income
  • Deductions
  • Credits
  • Dependents
  • Tax liability

Taxpayers can use the Should I file an amended return? tool within the IRS Interactive Tax Assistant to help decide if they should file an amended return to correct an error or make other changes if they already filed.

Time limits

To claim a refund, an amended return must generally be filed within:

  • Three years from the date the original return was filed, or
  • Two years from the date the tax was paid, whichever is later

If the original return was filed early, the three-year period begins from the April tax deadline. Special rules apply when there are net operating losses, foreign tax credits, bad debts or other issues. Additionally, taxpayers in disaster relief situations, combat zone service, have bad debts, foreign tax credits, or loss or credit carrybacks, may have more time to file an amended return.

How to file an amended return

Taxpayers must file Form 1040-X, Amended U.S. Individual Income Tax Return. When filing, they should:

  • Submit a corrected Form 1040, 1040-SR, or 1040-NR for the applicable tax year
  • Attach any supporting documents and updated forms or schedules

Refunds and payments

For tax years 2021 and later, taxpayers may request direct deposit of refunds when filing electronically. If additional tax is owed, payment should be submitted with the amended return. The amended return replaces the original return, and the IRS will calculate any applicable penalties or interest if filed after the due date.

Status of amended return

Taxpayers can check the status of an amended return approximately three weeks after it’s submitted. It generally takes 8 to 12 weeks for it to be processed. However, in some cases, processing could take up to 16 weeks.

State tax considerations

Changes to a federal return may affect a taxpayer’s state tax liability. Taxpayers should contact their state tax agency for guidance and should not attach state returns to the federal amended return.

For More Information Please Visit www.irs.gov