For many Australians Melbourne Cup Day is a day where we gather around our television sets and dream.
We spend the day contemplating race colours and lucky numbers and hope that when the horses come into the final straight, we’ll have placed a bet on the winner or by chance won in the office sweeps.
Few of us dare to even imagine what it might be like to be the owner of the horse who wins or what it might be like to take the winnings back to the stable.
However, today we thought we’d provide you with the opportunity to dream by demonstrating some of the deductions you can claim on a horse racing stud farm.
While the extra cash flow which can be earned from depreciation may not be a big as the $6.2 million in prize money on offer for the owner of today’s Melbourne Cup winning horse, there are substantial deductions horse racing stud farm owners can claim from the assets used on their properties each financial year.
As you can see, if you owned a horse racing stud farm, in the first full financial year, you could claim around $44,102 from the above listed assets alone.
Additional capital works deductions may also be available from fixed structural items such as stables or barns.
As shown in the table above, owners are able to claim depreciation deductions for the racehorses used in the operation of their income producing business.
Given this, it has become a BMT tradition in recent years to try and pick the Melbourne Cup winner based on the first year deductions which can be claimed.
Below is our research based on the horses we could discover purchase prices for this year and our race day predictions.
This year, Jameka is our favourite to take the winning prize.