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For those BO's that use boarder horses in lessons in exchange for discounted board...

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  • For those BO's that use boarder horses in lessons in exchange for discounted board...

    How is your contract worded to accomodate for such? I have a very extensive contract covering everything else, but as our lesson program is only 2 years old, this is a new situation. We have been discounting board a set amount for using the horse in lessons, but I want it in writing ASAP. Any suggestions?

  • #2
    I do not use boarder horses for lessons and discount board. Too slippery a slope for me.


    • #3
      Don't forget to include the horse owners name on your releases and also have them included on your insurance as an "additional insured" in case a lesson rider is injured while you are using their horse.


      • #4
        It is done all the time in the UK - maybe try googling british stables and see if you can find a "working livery" contract.The British Horse Society may help too.
        "Choose to chance the rapids, and dare to dance the tides" - Garth Brooks
        "With your permission, dear, I'll take my fences one at a time" - Maggie Smith, Downton Abbey


        • #5
          Technically you need their social security number for the 1099-MISC that you should issue for the exchanged value of the reduced board ...welcome to the brave new world; not really as we had to do that in the 1990s


          • Original Poster

            Thanks for all the information. Will be calling the ins agency and tax guy today!


            • #7
              As far as a contract, you could probably have it done as kind of a "reverse lease" type thing, couldn't you? You are"leasing" the horse from HI for $XX/month"????
              Adversity is the stone on which I sharpen my blade.


              • #8
                I've never done it but I would think it would be based on # hrs horse was used in that month - you certainly don't want to "pay" for "leasing" when horse is unusable due to being lame, away at a show, not able to use the horse as you lack THE RIGHT STuDENT TO "FIT" THAT HORSE, etc... (excuse the caps please)
                Last edited by Valentina_32926; Jan. 9, 2013, 09:32 AM. Reason: type
                Now in Kentucky


                • #9
                  At my barn you can make your horse available for lessons and you get a credit of $15 per lesson. No contract.


                  • #10
                    You only need to issue a 1099-misc if it is over $600.
                    The Love for a Horse is just as Complicated as the Love for another Human being, If you have never Loved a Horse you will Never Understand!!!


                    • #11
                      Originally posted by clanter View Post
                      Technically you need their social security number for the 1099-MISC that you should issue for the exchanged value of the reduced board ...welcome to the brave new world; not really as we had to do that in the 1990s

                      technically does that mean as a boarder I need to get my BO SSN so I can give them a 1099? I thought you only had to issue a 1099 for actual income, not for a discount... if trainer/BO is giving a discounted board for using horse for lessons how does that equate actual income to the boarder?

                      My former trainer gave me a liability release to sign when she used my horse for lessons. In reviewing it I realized it relreased the trainer (also BO) of any liability but NOT ME, so I re-wrote it to cover myself, my belongings (tack) and my horse.


                      • Original Poster

                        The discount is less than $600/year. The horse is mostly being used to get more exercise and some more extensive training than she had- she's a great safe horse, but needed some refinement. We've been discounting a monthly amount- it is not dependent on the # of rides, but owner is fine with her being used every day there are lessons scheduled as she does not ride often enough herself. I will definitely make all release forms more inclusive and check witht the insurance company about this. Thanks for everyone's input!


                        • #13
                          As a business owner, and horse person, I would take the exact amount off the next months board each month. So if in June, you used her horse 3 times, in July, her board would be minus the three rides from the previous month. You never know when a horse will get laid up. That way you can keep track of cost better versus paying a general dollar amount, and having a higher overhead that isn't making money.
                          I find a lot of people get rather emotional regarding horses and business, and sometimes this bleeds into someone feeling stiffed/shorted and the other party getting blindsided that the other party feels that way. Obviously, you know the situation better than anyone, but boundaries can be your friend
                          Just my two cents (no pun intended!)


                          • #14
                            I have a lease agreement - the trainer leases my horse from me and pays me separate from my board.
                            Originally posted by PeanutButterPony
                            you can shackle your pony to a lawn chair at the show...so long as its in a conservative color.


                            • #15
                              Originally posted by soloudinhere View Post
                              I have a lease agreement - the trainer leases my horse from me and pays me separate from my board.
                              This is what I would do. Seems like the easiest way.
                              Southern Cross Guest Ranch
                              An All Inclusive Guest Ranch Vacation - Georgia


                              • #16
                                Create an addendum to your boarding contract that details the horse's use, frequency of use, discount provided, terms for the discount, and MOST IMPORTANT, terms for termination. Also the addendum should state that it can be terminated without any effect on the board agreement.
                                Where Fjeral Norwegian Fjords Rule