In the waning days of 2015, President Barack Obama signed into law tax breaks that benefit farriers.

The $622 billion Protecting Americans from Tax Hikes Act of 2015 includes several provisions that helps those in the horse industry, including the Section 179 business expense deduction.

The business expense deduction allows anyone in the horse business to immediately depreciate as much as $500,000 of the cost of any equipment, trucks, etc., that’s purchased and placed into service in 2015 and 2016.

“The 179 expense deduction is a real stimulus to the $102 billion horse industry and will support thousands of jobs,” says Jay Hickey, president of the American Horse Council, which has aggressively lobbied Congress on this and other legislation that benefits the horse industry. “And it applies to all depreciable assets used in the horse industry.”

In recent years, it’s been an annual question mark whether Congress extend the deduction. The latest law makes the provision permanent. The deduction previously had been set at $500,000, but was reduced to $25,000 for 2015.

The legislation restores the bonus depreciation, which allows the deduction of 50% of the cost of new property purchased and placed into service during 2015 through 2019. It expired for 2015, but is revived to 50% for business property placed in service during 2015 to 2017. It reduces to 40% in 2018 and 30% for 2019.

“These provisions benefit racing and everyone who is in the horse business,” Hickey says. “Importantly, horse businesses, breeders and farms can now make long-term plans to take advantage of these tax provisions instead of just hoping Congress will extend them for 1 year, as has been the case recently.”

As the new year begins, minimize the costs of running a footcare practice by taking advantage of valuable tax deductions. Here is a list of legal and often overlooked deductions listed by the IRS:

• Casualty and theft losses from automobile accidents.

• Casualty and theft losses to replace tree and shrub damage by storms

or fires.

• Health care premiums.

• Medicare premiums and supplemental Medicare policies can be deducted as long as you still run your business.

• Contributions to Keogh, SEP and Simple retirement plans.

• Dues to the Chambers of Commerce and similar organizations if the membership helps you carry out your farrier business.

• Books, trade journals and publications used in your business.

• Reading material that is directly relevant to your business such as subscriptions to magazines, newspapers or newsletters.

• Internet and web page fees.

• Expenses incurred to analyze new products, such as a new shoe works on one of your horses so you buy a couple to test out. The cost of the shoe and items used to test how the shoe works are reasonable costs.

• Reasonable costs incurred to provide information that would eliminate uncertainty about the development or improvement of a product, invention, patent, technique, process or model.

• Any coffee, bottled water and food you provide to clients.

• Out-of-pocket costs incurred while doing work for a charity. If you drove your vehicle for charity, you can deduct the standard mileage per mile deduction as well as parking and tolls paid.

• Debt from unpaid services you provided.

• Bank fees, bank account fees and check printing fees.

• Credit card processing fees.

• If you use part of your home for business, you may be able to deduct part of the expenses for the business use of your home including any expenses associated with your home office such as mortgage interest, rent, real estate taxes, repairs, utilities (electricity, heat, water, gas, refuge service), security system and upkeep expenses.

Learn more valuable tax deductions by reading, “Don’t Overlook These Tax Deductions.”