Session I – Foundations of Equine Law: Regulatory Landscape and Practice Essentials – Peter Sacopulos
Until December 2020, thoroughbred, quarter horse, and standardbred racing were governed and regulated by state race commissions. On December 27, 2020, President Trump signed into law the Horseracing Integrity and Safety Act (HISA). The result being that thoroughbred horse racing is now governed by a federal set of rules. Quarter horse and standardbred racing remain governed and regulated by state racing commissions/authorities. Both HISA and state regulatory programs provide for an adjudication system that utilizes an administrative adjudication process coupled with a right of judicial review. This session will review HISA, its constitutional challenges, the Absolute Insurer Rule, and the federal and state administrative and judicial adjudication process.
Key topics to be discussed:
- The Horseracing Integrity and Safety Act (HISA)
- The absolute insurer rule
- State horse racing commissions/associations
- The adjudication process under state racing regulations and pursuant to the Horse Racing Integrity and Safety Act
Session II – Structuring the Equine Enterprise: Entity Selection and Tax Planning Considerations – Robert Webb
This session will explore how the legal and tax structure of an equine enterprise can significantly influence its long‑term financial outcomes. Drawing on federal tax principles and practical industry experience, we will examine how choosing the appropriate entity, whether an LLC, partnership, S corporation, or sole proprietorship affects income reporting, self‑employment tax exposure, depreciation opportunities, and loss utilization. We will also discuss the IRS’s heightened scrutiny of horse operations and the importance of running the enterprise in a genuinely businesslike manner, with proper recordkeeping, budgeting, and operational discipline, to avoid reclassification as a hobby under the §183 “hobby loss” rules. Using real‑world guidance the session will highlight how entity choice and documented profit motive can help protect deductions, withstand IRS challenges, and position a horse business for tax‑efficient growth.
Key topics to be discussed:
- Entity selection and its tax consequences for equine operations
- Depreciation and loss utilization as planning tools
- IRS scrutiny of horse operations and “profit motive” documentation
- Avoiding hobby loss reclassification under IRC §183
- Structuring for tax-efficient growth and audit resilience
Session III – Negotiating and Drafting Equine Industry Agreements – Jennifer Guidea
This session examines the transactions and contracts most common in the equine industry, including purchase and sale agreements, leases, boarding contracts, and breeding agreements. It focuses on the core deal terms and drafting architecture that make these agreements enforceable and workable in real operations, covering ownership and registration transfer, trial and installment structures, care obligations, insurance and indemnification provisions, and clear remedies when things go wrong. Attendees will learn practical approaches to allocating risk and drafting dispute-ready provisions for common contingencies such as health and soundness disclosures, hereditary conditions, foal guarantees, risk of loss, and payment, deposit, or refund disputes, while accounting for key state-specific considerations.
Key topics to be discussed:
- Why written agreements matter in the equine industry
- Ownership transfer, trial periods, installments, right of first refusal, risk of loss & seller disclosures in equine purchase agreements
- Horse care standards, assignment rights, insurance & indemnification in lease agreements
- Remedies, dispute resolution, and risk allocation clauses across equine contracts (insurance/indemnity at a high level)
- Disease disclosure, hereditary risk, foal guarantees & payment/refund terms in breeding agreements
Session IV – Equine Business Protection: Crafting Waivers, Rules, and Risk Management Plans – Allison Ecklund
This session will focus on essential legal and operational considerations for equine businesses, covering the drafting of waivers and releases in boarding, training, and event contracts to mitigate liability. Attendees will also explore the development and enforcement of stable rules, practical risk management strategies, effective crisis management and emergency response planning to ensure safety and compliance in the event of accidents or emergencies. The session offers valuable insights for equine professionals aiming to protect their businesses and clients.
Key topics to be discussed:
- Key elements for waivers and releases in boarding, training, and event contracts
- Establishing and enforcing stable rules for liability management
- Risk management strategies for equine businesses
- Crisis management and emergency response planning for equine-related incidents
Session V – Equine Liability in Practice: Real Estate Issues and Insurance Strategies for the Equine Industry – Peggy Hosking and Heather Wright
In this session we will discuss some legal considerations that are unique purchasing and leasing real estate intended for equestrian use. We will touch on items to investigate during due diligence such as zoning, permitting, licenses and environmental requirements such as storm water and runoff water management, manure management and dust management. Then we will discuss additional considerations when leasing property for equestrian use, including repair and maintenance responsibilities, arena maintenance, landscaping maintenance, biosecurity, evacuations, employees, liens, abandonment of animals and waivers of liability. We will close this section with a brief outline to insurance for equestrian operations which will be covered in the next segment.
Key topics to be discussed:
- Considerations when purchasing real estate for equestrian use
- Considerations when leasing property for equestrian use
- Liability insurance for horse owners
- Property insurance for equine operations
Closed-captioning available