Donations

To be assured that your donation is proper and correctly documented under IRS regulations, contact a qualified equine attorney or certified public accountant.

If your horse is worth $500,000 or more, the entire qualified appraisal report must be attached to your tax return when it is filed.

Adding Value

While it is true that horse ownership can be expensive, and the emotional rewards usually outweigh the financial benefits of being involved in this sport, there are ways to add value to your horse. As Spring arrives, many of us are planning our competition schedule. Consider setting goals that will enhance the value of your horse. It is possible that the financial rewards of horse showing will surprise you.

As you manage your horse’s career, it’s important to consider if you are participating in the “right” competitions. This is most pressing if you plan to sell your horse, but you might not realize that enhancing your horse’s value is good for the Industry, provides bragging rights, and builds long-term equity in your horse. Many horses are not specifically marketed for sale. Rather, potential buyers seek out horses of the highest caliber, horses they’ve admired at shows, or horses that are highly recommended by their trainers and fellow equestrians. Having buyers come to you is ideal in this tough horse-selling environment.

As a horse lover, you probably have an idea about the type of accomplishments that make a horse sound impressive and valuable. These vary from discipline to discipline, but the competitions that you dream of are those that make potential buyers drool, too: the AQHA Congress, the National Finals Rodeo, the Scottsdale Classic, the Tennessee Walking Horse National Celebration, just to name a few.

If you have a national caliber horse, do your research to develop a competition schedule that includes at least one major event each year. The World Show for your breed association, major multi-breed shows like the Reichert Celebration, and discipline specific events like the National Barrel Horse Association World Championships have the prestige and are well known throughout the equestrian community. Some competitions are so well marketed and respected that they add value to your horse just for being qualified to attend (think AQHA World Show).

For those who show at the Regional level, you can build your horse’s worth by seeking out those circuits that are respected in your area. Competing against good horses and doing well is impressive. Consistently winning at local or regional shows let potential buyers know your horse could step up and be competitive at the next level, too. Shows that are aggressively marketed in your region are those that will be best known by potential buyers. That’s where you want to spend your time and money.

After mapping out this season’s show schedule, it’s time for the two most important things you can do to enhance your horse’s value.

First, document your accomplishments. Photos and videos of your horse being exhibited are not just selling tools. They are invaluable if you have to determine the worth of your horse after an injury or worse. Accomplishments should also be documented. The show secretary is not infallible, so rely solely on their information at your own discretion. I have a three ring binder in which I keep the prize list for the shows I attend and my entry information. Jot down placings and the size of the classes. My notes help me validate the information reported to the breed association or other governing body, like USEF or NCHA.

Secondly, find ways for your horse to earn money. Especially with younger horses, there are many opportunities to compete in Futurities that pay handsome purses. From Working Cow Horse, to Reining, and Barrel Racing, there’s money to be won. But all horses have big money prizes in various disciplines. The Equine Sports Medicine $250,000 Challenge at the Reichert Celebration rewards Western Pleasure Horses. The United States Hunter Jumper Association has a $100,000 Hunter Classic. And, many local shows offer sweepstakes and jackpot classes. Anyone remember Ride-A-Buck? Also, enroll your horse in programs that pay. A good example is the APHA’s Breeders Trust Program. APHA paid a little more than $15 per point earned in their approved competitions. These earnings become part of your horse’s permanent record. And, who doesn’t want a horse that pays his own way?

Work in a few larger competitions, document your results, and earn money doing it: the perfect recipe for adding value to your horse.

A Cost of Doing Business

I am often saddened by the circumstances under which clients call me. Appraisals are mostly fun, but it tugs on my heart strings when I hear of a horse lost to a terrible accident. It's even more difficult when I hear of the financial hardship this places on the owner.

Several years ago, a promising young show mare was being readied for a run at her first World Championship title. The industry was a-buzz with news of this "amazing mare" and many people were hoping to catch a glimpse of a spectacular performance. Just a couple of weeks prior to the highly anticipated event, the mare perished in an accident at the trainer's facility.

Later, we were contacted to perform an appraisal to assess the mare's value at the time of her death. Litigation was pending and the parties could not agree to how much the mare was worth. I was surprised to learn that the mare was NOT insured at the time of her demise. Her owner felt it was too expensive to insure her!

Five years later, a settlement has not yet been reached between the parties.

Please do not let this unfortunate situation happen to you. Insuring your show horses is a cost of doing business. It's also a very smart investment for those of us who cannot simply afford to replace our horse in the event of the unthinkable.

With the economic downturn and downward pressure on sale prices, I have recommended that you make sure your horse is not over-insured as a way to save money. But I hope that you realize the importance of having your horse insured, period. Under-insuring or skipping insurance altogether is a mistake for all but the least expensive horses.

Insurance provides a financial asset to compensate you in the event of catastrophic loss. Some policies also cover loss of use or medical expenses. And, insurance documents your honest assessment of what your horse is worth. If the unthinkable happens, there is proof of the horse's insured value - even if it is not equal to the fair market value of the horse at the time of his / her demise.

Please investigate the options and determine which insurance product best meets your individual circumstances. There are many companies from which to choose, many offering discounts to members of various breed associations. Ask for references from your prospective agent. Hearing from current customers about their claims experience is a wise way to pick a company you can trust.

Insurance is one of those things I hope you never actually need. But, if you should need it, you'll be happy you did the legwork in advance to protect yourself.

Publication

I am happy to say my blog post, The Value of Unsoundness, was recently published by The Horse Resource Magazine, an IN based horse periodical. Thanks, Tina!
Check it out at http://www.thehorseresourcemagazine.net/

The Horse | Horse Fraud Trial: Winning the Selleck Case

The Horse | Horse Fraud Trial: Winning the Selleck Case

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The value of unsoundness

As appraisers, we are often asked to appraise horses that are unsound in some way. With age, competition, and training, horses are expected to develop "issues." Some of these can be treated with minor maintenance, and others require more invasive efforts to continue a horse's competitive career.

It would be uncommon for an aged show horse to withstand the rigors of a competitive discipline without some maintenance (supplements, cold hosing, hock injections are a few examples) and even more unusual for a show ring veteran to be “completely sound.” I would be shocked to find a veterinarian to declare one as such.

Many owners are choosing to donate their serviceably sound horses to equestrian programs and non-profit organizations. These groups benefit from the time constrains and “it’s disposable” attitude of the competitive horse world. Horses with treatable injuries or which require maintenance are welcome additions to most programs. For a little TLC and some (often donated) veterinary service, they can add a talented, well trained mount to their stable.

If a horse is unsound with a poor prognosis for recovery, it may be more difficult to donate. A non-profit may not be willing to take on the burden of caring for a horse they cannot ride, but a school with a veterinary program may relish the opportunity to give students a real-life example to treat. If you are considering donation, research the options carefully. Some programs will notify the original owner if the horse is no longer suitable for their purpose; however, many just sell the horse without notification. And, vet schools may try untested treatments or even practice euthanasia. Know what your horse might experience, and determine what you can live with, before making the final decision.

In summary, we regularly appraise horses that have suffered injuries or experienced soundness issues. The value is determined based on the horse as perfect, then subtracting for the type of care they require and any the prospects for their future. A $100k horse which develops ringbone may be worth less to a buyer than one who develops navicular, because the latter is often managed with improved shoeing and drug therapy.

Currently being circulated on the Internet

MEMO

TO: President Barack Obama

RE: Economic Recovery Stimulus Ideas

Mr. President, it has come to my attention that you're having some challenges with the economy. If I understand things correctly, we're in a recession, consumer confidence and spending is down, credit is tight, investors are spooked, we need renewable energy, and health care costs are through the roof. Trillions of dollars, not to mention our future, are at stake. Mr. President, I'm just a regular citizen, but I think I have a solution.

Give every American a horse.

My proposal may not make sense to you at first, but let me give you a little background. First of all, horses in the U.S. are a multi-billion dollar industry, and that's just at my house. I suggest you have your economic advisors do a little research on the spending around horse ownership. You'd be surprised, Mr. President.

Start by visiting the tack and clothing retailers like State Line or Dover . Look at the variety of goods available there. Now take into account that every horse owner, especially if it's a woman, is buying not just one or two, but tons of these items. Believe me.

So my thinking is that if you give every American a horse, starting when they reach the horse-receptive age of 10, you're going to do two things: boost consumer confidence and boost spending immediately.

Horses make us feel good, and once Americans all own horses (at the government's expense, of course), they will all logically fall into the pattern that every horse owner succumbs to: accessorizing. For starters, we need horse-care implements like buckets and muck rakes, hoof picks and curry combs. And we need at least basic tack, halter, leadline, saddle, saddle pad, bridle and bit. But then the fun begins.

Zebra print leg wraps. Neon bright fly masks. An assortment of sheets and blankets for all seasons; you've got your cooler, your lightweight blanket, your medium blanket, your heavy blanket. Then there is your stable sheet and your pasture sheet. Also your hoodie, and tail wrap items.

And that's just the clothing for the horse. Don't get me started on the clothing for the rider, even if he or she doesn't show. Since most Americans don't have a basic riding wardrobe, the stores would be swamped for jeans, boots, breeches, T-shirts, dozens of pairs of cute boot socks, and the ubiquitous ball cap. Tell the retailers to get ready. It'll be Christmas all year long.

Now lets talk about support industries. In addition to the usual veterinarian and farrier expenditures, people also give their horses chiropractic, massage and acupuncture, not to mention buying more beauty products for their horses than they do for themselves. All those professions and industries will benefit. And of course there will be a big spike in hay and grain demand, so the farmers will be happy too.

You see, that's the secret to jump-starting consumer spending through my stimulus package. People will spend money on their horses when they won't spend money on anything else.

But, your advisors might say, there's a catch. Aren't we paying the price, in global warming, of the large number of livestock animals we currently have? They produce all that methane!

Ah, Mr. President, here is the real beauty of this idea. When you introduce the Methane-Assisted Natural Unrefined Renewable Energy plan (M.A.N.U.R.E.), you'll be a hero for coming up with an alternative, renewable, home-grown source of clean energy. Just challenge the energy gurus to come up with a methane gas collection system that can harness all the natural resource produced by all those horses to power our cities. Talk about shovel ready projects:Â M.A.N.U.R.E. fits the bill!

And you keep stressing how we need new industries for investment; well, under the M.A.N.U.R.E. plan you can sell Petroleum Offset Opportunity units to investors. By buying these units, investors can help us gradually convert from a petroleum-based economy to one based on horse P.O.O.

Health care costs will go down, too, as everyone cares for their horses their stress levels will go down. It is great therapy. You can give tax credits based on the amount of time people spend working, riding and hanging out with their horses, which will automatically make them healthier. (Don't tell the docs, but most horse owners already get their own basic healthcare from their vet.)

One more thing: everyone is annoyed by these corporate CEOs and their big bonuses in a down economy. So give the executives, say, one horse for every $100,000 of bonus money they've received. Those bonuses will be plowed back into the economy in no time.

Finally, because you, Mrs. O, and the girls are such role models, you can encourage us all by getting a pony for Sasha and Malia. It will teach them responsibility, help the First Lady plow the garden, and as a bonus: free fertilizer for the Rose Garden.


If you don't believe me that horse ownership stimulates spending, go ahead, Mr. President. Buy that pony for your girls.. You'll see.

The often overlooked TRAIL HORSE

I have seen an increase in the number of inquiries from casual or weekend riders. While competitions report a decline in entries, and showing becomes more expensive, it seems that backyard horse lovers are thriving.

And why not? There's never been a better time to buy a horse - and get the most for your money. Prices of mid-range show horses have fallen so much that even weekend Trail Riders can afford something with miles and show ring achievements. A mare with over 100 AQHA points would have likely brought $20-25k back in 2007. The owners could no longer afford to show her, so she sat in a pasture for a year, and then sold in April for $7,500.

If you are a seller, make sure you honestly evaluate your horse's potential to become a backyard pet, casual riding companion, or mount for a novice horse person. Show horses are used to routine and a regular exercise program. Not all of them will transition to a seemingly idyllic life of daily turn out and just one or two rides a week. Even fewer will relish the opportunity to explore unknown territory outside of the arena without balking.

This is a great opportunity to help your show horse stay mentally young by incorporating a trail ride or "out of arena" work into your regular program. There's a recent article in Horse & Rider where Al Dunning talks about the value of getting your horse out and about.

And, if you're looking to buy: make sure you test the horse doing whatever you plan to do, whether that be on the trails in a national park, along the beach at a remote coastal area, or down the road of your residential development. Your safety and the horse's happiness and willingness to do the job are paramount in your buying decision.

I got the chance to participate in a private trail ride at the foot of beautiful mountains in New York. My mount was a sturdy solid black gelding with good ground manners and patience. I felt confident and safe riding him along unfamiliar terrain, through streams, under branches, up hills, and around large rolling fields. He many not look like much or be a beautiful mover, but his mind made him priceless...

It's cool to recycle!

I compete regularly and enjoy every second I get to perform in front of a live audience. Others enjoy watching, and yet some want to build their relationship with a horse outside of the spotlight, like riding on beautiful, scenic trails. Fortunately, there isn't just one "right" way to be involved with horses.

If you are chasing show ring glory, it is possible to do it on a budget. Be smart in how you invest. Buy the best quality horse, tack, and products you can afford, but don't pay more just because something is popular. Trends will come and go, but good quality will last for many years.

Sites like ebay.com and the Pleasure Horse Journal Forum on delphiforums.com offer used show clothing, tack, and barn items, most very modestly priced. Don't be afraid to buy second hand.

In my youtube video, Trail, both my jacket and saddle are "gently used." In this day and age, it's cool to recycle!

Get Your "Seller's Tool Kit"

The appraisal business has been good the past few months, with many inquires on appraising diverse stock from imported Warmblood Jumpers to "kid-tested-mother-approved" POA ponies.

With many calls from potential sellers, we are frequently asked, "How should I price my horse?" Sterling is offering a new, simple Market Analysis, to making pricing your horse for sale easier and more effective than ever.

The Market Analysis is a Seller's Tool Kit to pricing your horse fairly. It will provide the details necessary to align your horse's asking price with the shifting market, and substantiate how the asking price was derived, including sales of comparable horses in your geographic area.

For the month of June, we're offering the Market Analysis for just $375. Contact us today for more information. www.equineappraisals.com

New Jr. Appraiser Rounds Out The Stable!

Join us in welcoming Darren Cea to the Sterling Equine Appraisals Team! Born into the equestrian lifestyle, Darren is an experienced horseman well versed in Hunter/Jumpers. Growing up through the Pony Hunter and Equitation ranks, he competed often at HITS, Old Salem, Ox Ridge, Coker Farm & Gardnertown. He has ridden with Michael Page, Peter Leone, and Frank Chapot. After his "day job" as a police officer, Darren enjoys showing in the Jumpers and breaking young stock for several well known farms in NY. He is a welcome addition to our stable of Jr. Appraisers.

How is the economy affecting the value of your horse?

At Sterling Equine Appraisals, we've been hearing this question a great deal lately. It is understandable that horse owners are nervous about how the world economy will impact their individual horse operations.

The exchange rate between the US Dollar and currency of nations from which we frequently import / export horses is especially critical to a stable valuation of American horses. The Euro and Canadian dollar have all been higher than the US dollar in recent times, making horses in the United States less expensive to international parties. This is good for those in the US trying to sell their animals "north of the border" or "across the pond." However, it makes importing horses more expensive for US buyers. This is probably the most favorable time for US buyers to look within our own country for their next prospect. American farms have spent years importing the best performance and bloodstock from Europe. Take advantage of it and find a bargain in your own backyard. Shipping across the US is still less expensive than importation, even if you live near a major port or quarantine facility.

As an equestrian, you may be one of the lucky people at the upper end of the sport that is not terribly impacted by the financial situation of many. But, if you're like most of us, you ride, compete, or breed in the middle market, characterized by horses in the $25,000 to $85,000 range. This market has been significantly impacted by the tightening of the credit markets. Without easy access to home equity lines of credit or uncollateralized personal loans, including credit cards, equestrians in this realm find it harder to finance their next "dream" horse. We're seeing a rise in the number of horses donated to non-profits and schools because the tax benefits of the donation are greater than what the horse could be sold for in a reasonable period of time. Occasionally, the recipients turn around and sell these horses for a deep discount just to raise cash for their programs. We recommend that you contact some of the riding programs in your area or search on-line for horse rescue and adoption facilities.

Money Saving Tip: Ask your insurance agent to review your equine insurance policy. It is possible with the decline in the middle market that your horse may be over-valued, and therefore over-insured. You could potentially be paying a higher premium necessary.

Overall, our sense is that the horse market is still strong and interest in horses has not waned. While some may be cutting back on the distance they're willing to travel, there are still plenty of active equestrians and available horses. Sellers are also being more flexible, arranging payment plans or offering leases with the option to buy. If you are trying to sell a horse, consider how you can make it more affordable for a newcomer to get into this exciting sport. Maybe offering the first month of board free with purchase could help close a sale that would otherwise be lost when the buyer realizes the old adage, "The purchase price is the least expensive part of horse ownership." But, expect that you will hear from many potential buyers before your horse actually sells. This should not frustrate you (but it will); it should be a good time to polish your marketing and salesmanship skills.

Visit our website at http://www.equineappraisals.com/ and make sure to check out our Frequently Asked Questions page for the most up to date information and insights on the horse market. We welcome your feedback and questions on our opinions. Thanks for reading!

PONY CAMP a smashing success!

The east-coast office of Sterling Equine Appraisals was closed to host the very popular PONY CAMP series. Pony Camp allows youngsters to experience caring for, riding, and enjoying ponies and the equestrian lifestyle (mucking stalls!) in a safe, fun atmosphere.


Leah Struzzieri oversees the Pony Camp, coordinating real-life horse activities and personal growth opportunities for the campers. This year, several campers got to visit the prestigous at Center for Veterinary Care in Millbrook, NY. Dr. Vin kindly explained a variety of medical conditions to the eager students and even let them play Vet Tech for a horse undergoing Game Ready Treatments.

Congratulations to this year's Pony Camp Graduates!

A Big Round of Applause

We're just back from the 2008 Pinto World Show held annually in Tulsa, OK. This is the largest gathering of registered Pinto horses in the country, drawing about 1,500 equines including western, english, saddle seat, driving, halter, and performance horses, ponies and miniatures.

I would like to extend hearty congratulations to everyone from the TS Paints Gang for their amazing performances and excellent placings. I am very pleased to share that my young gelding, Gotta Be A Hotrod, earned two Top Ten Placings in my Amateur Western Pleasure classes. This is just the start of a lot of success that I expect "Eddie" to have over his career. He's developing into quite an all-around performer and we anticipate unveiling his skills in Green and 3 & 4 Year Old Trail at the Reichert Celebration and NSBA World Championship shows in August.

In addition to a wonderful horse and a healthy bank account, it takes a great deal of determination and support to excel at the highest levels of equestrian sports. Most dedicated equestrians are ambitious, self disciplined and competitive by nature. We participate in this sport, forsaking almost everything else, because we love what we do. But that can be overwhelming to those around us who are not quite as horse crazy!

Thank you to my wonderful husband, Scott, and my trainer, Melissa Sachs, for the encouragement to try anything I put my mind to! And, to Leah, my partner in everything equine, you do the best job of applying face grease of anyone I have ever yelled at right before a class. Thank you for continuing to come and sing the Champion Chipmunk song to help me focus before my grand entry.

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