Main Office

303 Convention Way, Suite 4
Redwood City, CA 94063

Branch Office

New Orleans, LA

Financial Checklist for California Horse Boarding Facilities Part 2

5. Keep Business and Personal Money Separate

One of the most important financial controls for any boarding facility is a separate business bank account.

Avoid routinely paying personal expenses from the business account or using personal accounts to pay ordinary business expenses.

Maintain separate records for:

  • Operating income
  • Payroll
  • Feed
  • Bedding
  • Veterinary expenses
  • Repairs
  • Utilities
  • Insurance
  • Property expenses
  • Equipment
  • Professional fees
  • Taxes
  • Owner distributions

A clean separation makes bookkeeping, tax preparation, financial analysis, and potential financing substantially easier.


6. Maintain a Monthly Accounts-Receivable Report

Boarding facilities often operate on recurring monthly billing.

A basic accounts-receivable report should show:

BoarderHorseCurrent Balance30+ Days60+ Days90+ Days
Boarder AHorse A$_____$_____$_____$_____
Boarder BHorse B$_____$_____$_____$_____

Do not allow unpaid balances to accumulate indefinitely.

Establish a written collection procedure covering:

  1. Invoice date
  2. Payment due date
  3. Reminder notice
  4. Late-payment procedures
  5. Written demand, when appropriate
  6. Termination procedures
  7. Horse-removal requirements
  8. Legal escalation when necessary

The facility’s boarding agreement should be reviewed by California counsel to ensure collection and termination provisions are enforceable.


7. Trainers Need Their Own Financial Records

Trainers operating at a boarding facility should maintain financial records separately from the boarding facility.

A trainer should track:

  • Training revenue
  • Lesson revenue
  • Horse-show expenses
  • Travel
  • Fuel
  • Equipment
  • Insurance
  • Advertising
  • Professional fees
  • Contractor payments
  • Facility fees
  • Commissions
  • Reimbursed expenses

If a trainer operates as a separate business, the arrangement with the boarding facility should be documented in writing.


8. Be Careful With “Independent Contractor” Trainers and Stable Workers

This is one of the most important California compliance issues for boarding facilities.

Calling someone an “independent contractor” does not automatically make that person an independent contractor.

California generally starts with a presumption that a worker is an employee unless the applicable legal test is satisfied. Under the ABC test, the hiring entity generally must establish, among other things, that the worker is free from control and direction, performs work outside the usual course of the hiring entity’s business, and is independently established in the same type of business. California also recognizes circumstances in which other tests or statutory exceptions may apply.

California DIR: Independent Contractors

Simply doing any of the following does not, by itself, determine worker status:

  • Signing a contractor agreement
  • Issuing a Form 1099
  • Calling someone a contractor
  • Having the worker provide an invoice

The issue can be particularly important in the equine industry because a person may perform tasks such as:

  • Stall cleaning
  • Feeding
  • Turnout
  • Grooming
  • Horse handling
  • Facility maintenance
  • Training
  • Riding
  • Barn management

The legal classification depends on the actual relationship and applicable law—not merely the label placed on the arrangement.


9. If Workers Are Employees, Track Payroll Carefully

California employers need a reliable payroll and timekeeping system.

Depending on the applicable wage order and circumstances, records may need to capture information such as:

  • Employee identity
  • Hours worked
  • Meal periods
  • Applicable wage rates
  • Wages paid
  • Payroll dates
  • Deductions
  • Other required payroll information

California’s agricultural wage order, for example, contains specific recordkeeping requirements for covered agricultural employees, including time records and wage information.

California DIR: Agricultural Occupations Wage Order

California’s minimum wage is $16.90 per hour effective January 1, 2026, unless a higher state, local, industry-specific, or other applicable rate applies.

California DIR: Minimum Wage FAQs

Facilities should not assume that because work involves horses, a worker is automatically subject to the agricultural wage order. The applicable wage order depends on the actual work being performed and the legal classification of the operation and employee.


10. Watch the Clock—Especially in a 24/7 Horse Environment

Horses don’t follow a Monday-through-Friday schedule.

That does not mean an employee’s work time can simply be treated as “barn time.”

California generally requires covered nonexempt employees to receive required meal periods and rest periods. A meal period generally must be at least 30 minutes when the work period exceeds five hours, subject to applicable exceptions.

California DIR: Meal Periods

Covered employees are also generally entitled to paid rest periods based on the hours worked.

California DIR: Rest Periods

Facilities should therefore carefully document:

  • Start time
  • End time
  • Meal periods
  • Rest periods where applicable
  • Split shifts
  • Overnight work
  • Emergency work
  • Call-back work
  • Training or meetings
  • Required barn chores before or after scheduled shifts

Do not allow employees to work “off the clock.”


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.”

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

L. Lopez CPA & Associates Offers Services To The Equine Industry

The equine industry is unlike any other business — and your accounting firm should understand that. At L. Lopez CPA & Associates, we combine professional tax and accounting expertise with real-world equestrian experience. From horse trainers and boarding facilities to breeding operations, tack shops, feed stores, equine service providers, and veterinarians, we deliver specialized bookkeeping, payroll, tax preparation, and sales tax services tailored specifically to the horse industry. We understand the financial demands, seasonal cash flow, competition schedules, staffing challenges, and operational complexities unique to equine businesses nationwide

With a background in horse showing, jumper competitions, and equestrian retail operations as owners of the ‘Tie Down Tack Shop for 25 years in Los Altos, California, our team brings industry insight that goes beyond the numbers. We help equine professionals stay compliant, improve profitability, streamline operations, and gain financial clarity so they can focus on running successful programs and caring for their horses and clients.

Whether you manage a large training barn or a growing horse-related business, we provide trusted financial guidance designed to support long-term growth and success in the equestrian world.

Call us today to get started by calling 650-361-1235

Protecting Yourself From IRS Scammers

Know how and when the IRS contacts you so you can protect yourself from impersonators.

Ways The IRS contacts you

The IRS typically contacts you the first time by mail delivered by the U.S. Postal Service.

To verify it’s the IRS, search IRS notices and letters. Some letters are sent from private collection agencies.

Other ways the IRS may contact you:

  • Email – They email only with your permission, with a few exceptions like criminal investigations.
  • Text message – They text you only with your permission.
  • Phone – The IRS or private collection agencies may call you to address account matters. In some cases, IRS uses automated messages that direct you to IRS.gov to securely manage your account, make payments or resolve an issue. The messages don’t share specific details.
  • Fax – They might send a fax to verify or request employment information.
  • In-person visit – These are rare. Find out how and when IRS employees visit you or your business. The IRS generally sends a letter before we visit.

The IRS doesn’t:

  • Direct message or take payment on social media. Follow our social media accounts
  • Accept gift cards or prepaid debit cards as payment
  • Call with automated messages that threaten or direct to websites that aren’t IRS.gov
  • Threaten to call law enforcement or immigration officials
  • Take your citizenship status, driver’s license or business license
  • Mail tax debt resolution advertisements

If the IRS visits you

Unannounced visits are rare. Only 4 types of IRS employees may visit your home or business. Each contacts you in specific ways and carries official identification (ID).

Revenue agents – examinations (audits)

Revenue officers – collections

Special agents – criminal investigations

Fuel inspectors

Identification the IRS carries

Revenue officers, revenue agents and fuel inspectors carry an IRS-issued credential (pocket commission) and HSPD-12 card. Both have the employee’s serial number and photo. You can ask to see both.

  • You may ask to see an additional ID from revenue agents and fuel inspectors.
  • Fuel inspectors also wear uniforms and drive government vehicles.

Criminal Investigation special agents present law enforcement credentials when they investigate.

If you feel unsafe, call 911

If the person doesn’t show you these IDs or you aren’t sure about them, call the number on the card provided by the revenue officer or agent. For more information go to www.IRS.gov