Vision Quest One Equine Appraisals

Vision Quest One Equine Appraisals Qualified equine appraisals specializing in hunters jumpers and equitation horses. Reports written for donation, insurance, taxes, etc. ASEA certified.

05/06/2020

BlogsBay Broadcast The Ins and Outs of Equine Appraisals May 6, 2020 Photo © Lauren Mauldin You’ve heard of appraisals before, but it’s probably most likely dealing with a piece of real estate. Banks need an objective, third-party perspective to determine what a property is worth before they fe...

03/16/2020

If you need an appraisal done for donation. Or you need information on how to donate your horse, and options that will best suite your horse, I can help.
Please contact me
Sue Leep
ASEA appraiser
708-404-4336

12/11/2018

UC Davis is looking for equine donations for their NCAA equestrian program.
Let us know if we can be of service.

2018 is coming to a close. I am available for appraisals to those who are planning on donating or need any other apprais...
11/27/2018

2018 is coming to a close. I am available for appraisals to those who are planning on donating or need any other appraisal situation for their horse.

09/28/2018

EQUINE APPRAISALS
Qualification as an equine appraiser is administered by the American Society of Equine Appraisers (ASEA). The initial application establishes the primary education, training, and experience of the applicant, and those who are approved are invited to participate in the ASEA training courses. Individuals who possess a sound working knowledge of the equine industry and have extensive experience in the equine industry are identified in the initial application process.

The initial process of appraising horses involves determining the purpose of the appraisal, the intended users and the scope of work that will be required to complete the assignment. Three types of reports can be generated at the conclusion of the appraisal:

Summary Appraisal Report:
This report is the most commonly used in equine appraisals. The appraisal method used, general information, description and value of the subject, and certification and qualifications of the appraiser are included in this report. In addition, addenda such as registration certificates, pedigrees, photographs, and descriptions of comparables are included.

Self-Contained Appraisal Report:
This report is the most extensive of those generated. In addition to the information included in the Summary report, this report requires a detailed explanation of methodologies and calculations that were used to derive the appraised value.

Restricted Use Appraisal Report:
This report is for the exclusive use of the client and precludes the appraiser from testifying at a deposition or in court based on the information within the Restricted Use report.

The two most common methods for equine appraisals are the sales comparison approach and the income approach. In the sales comparison approach, horses are evaluated on factors such as:

Bloodline: Sire, Dam, evaluation and analysis of several generations in the pedigree. Championships and earnings throughout the pedigree are evaluated.

Earnings: Money won in show competition or racing by the subject horse.

Age: Determination of age can be a factor in establishing value. The discipline within the industry will determine value related to age (examples: younger horses involved in racing vs. older horses in the hunter/jumper industry).

S*x: Stallion, Mare or Gelding will be determined and can play a role. Will the stallion or mare be potentially used for breeding? What is the intended use of the gelding?

Training: Amount of training (young horse just entering training vs. a horse with extensive training) is evaluated and considered when establishing value. More data is available with horses that have been extensively trained with regards to prediction of performance.

Conformation:
Evaluation of balance, structural correctness, muscling, quality, s*x and/or breed character, and way of going are evaluated. These factors are important in being able to relate form to function and predict the longevity of the subject horse.

Condition:
Determination of body condition can be an indicator of management and nutritional programs. Analysis of the current feeding program is a part of this section and can provide the appraiser with information that will help to establish value.

Soundness:
Horses should be sound and free of lameness. In the case of lameness, determination of causative factors will be established (example, genetic vs. injury), and will play a role in establishing value of the subject horse.
Eye appeal: In some cases, the bright, alert, “pretty” horse is a factor in establishing value. For example, a pretty horse may be more valuable to the parent who desires to buy a show horse for their child.
The subject horse will be scored on each of these items, and compared to 3-5 similar (comparable) horses. Once adjustments are made to equalize the comparable horses, the established (appraised) value is determined.

The income approach can be used in the case of horses that are designated for breeding purposes; factors such as:

Breeding history: In the case of stallions, how many foal crops has he produced? How have those foals performed in the arena or at the track? In the case of mares, how many foals has she produced and how have they performed?
Breeding fees: Does the stallion have a history of breeding fees? Have they remained consistent, or gone up or down? Is the stallion registered with any Incentive Funds? What type of fees do his siblings or half-siblings command?
The subject horse as well as comparable breeding horses can be used to establish value.

Equine appraisals through ASEA comply with The Uniform Standards of Professional Appraisal Practice (USPAP). These standards ensure competency in conducting appraisals, ethics and impartiality of the appraiser, and credibility of the report.

EQUINE APPRAISALS FOR LEGAL DISPUTES
While the approach taken to perform an appraisal may not be fundamentally different when performed within the scope of a legal dispute, it may be beneficial to work with an appraisal professional who is familiar with the rigors of the legal industry.

For more information, submit an inquiry or contact Dr. Potter



FEATURED EXPERT
J. Tim Potter, Ph.D., PAS
Equine Scientist & Qualified Equine Appraiser

Dr. J. Tim Potter is a Qualified Equine Appraiser with the American Society of Equine Appraisers, and is a Certified Professional Animal Scientist with the American Registry of Professional Animal Scientists. Dr. Potter received his B.S. (Animal Science), M.S. (Physiology of Reproduction), and Ph.D. (Physiology of Reproduction) degrees from Texas A&M University in 1983, 1986 and 1990, respectively.

09/05/2018

Donation FAQ’s

Q: Is there an IRS requirement of how long the program or university needs to keep the horse before they can sell it to make sure the donor won’t have problems with their write off?

A: If your organization disposes of property for which it signed a Form 8283 within three years after receiving a contribution, the organization is required to file Form 8282 with the IRS. Form 8282 must be filed within 125 days after the date your organization disposes of the property, and a copy of the form must be provided to the original donor. For example—if you get the horse appraised for $40,000 and then use that amount to get a write-off and then the non-profit sells it before three years for $10,000 then the donor would have to recapture a portion of their prior year deduction taken (i.e. declare taxable income).

Q: If you get a horse appraised for let’s say $40,000—what amount of that can you write off?

A: The amount of your deduction for charitable contributions is limited to 50% of your adjusted gross income, and may be limited to 30% or 20% of your adjusted gross income, depending on the type of property you give and the type of organization you give it to. The 50% limit applies to the total of all charitable contributions you make during the year. This means that your deduction for charitable contributions cannot be more than 50% of your adjusted gross income for the year. For most individuals the 50% rule will apply. However, if the horse is considered a business asset or capital gain property, the donation is usually limited to 30% of AGI.

Since GoHorseShow.com is not an expert in tax law and every nonprofit has their own requirements; it is wise to contact the program you may be considering to find out their requirements and also to consult your accountant to structure your contract in a way that gives you the most tax benefits. We would like to thank Carrie Russom Quraishi for her help in clarifying the IRS tax requirements.

08/24/2018

Equine Law: Donating Your Horse To a College Program.
Kjirsten Lee breaks down the process.

College equestrian programs provide students with opportunities to compete in equestrian events as their primary sport and can also introduce newcomers to the horse world with the opportunity to hone their skills. Most college programs thrive on donated horses — they may not have the budget to purchase animals. If you may be considering donating your horse to a college equestrian program, here are some things to consider.

Reasons for donating
For a variety of reasons, people every year decide to donate their horse to a riding program at a riding school or university. It might be because the horse wasn’t selling and the owner needed to find it a new home, or it could be because the owner had outgrown the horse and did not want to look for a private seller. The first thing you should consider is why do I want to donate my horse? Is it just because I can’t find a buyer, or do I think it would thrive in the school horse environment?

Whatever your reason, you will probably want to do some research on the institution to which you want to donate. Look into a few things:

How long have they had an equestrian program?
Does the program have a good reputation?
Do the horses appear to be well cared for?
How much work does the average school horse do on a daily basis?
What qualifications do the staff have?
Is the program strictly riding lessons, or do they offer some sort of horse management education as well?
How long do they keep horses in the program?
What happens when horses can no longer be used in the program?
Is there a possibility to get the horse back when it can no longer be used by the institution?
Of course, if you are already familiar with the organization (let’s say it’s your alma mater), you might not have to do the same amount of research. But if you’re coming in cold, it’s a good idea to know what you’re getting your horse into.

The donation process
Every institution will have its own procedure for donating horses. For example:

Albion College: http://www.albion.edu/about-albion/held-equestrian-center/donate-a-horse
Lake Erie College: https://www.lec.edu/equestrian/donate
Mount Holyoke College: http://athletics.mtholyoke.edu/facilities/equestrian_center/donating/index
University of Findlay: http://www.findlay.edu/sciences/equestrianstudies/english-equestrian/How-to-Donate-a-Horse
Most donations to colleges and universities are tax deductible, so be sure to keep all the paperwork and mention it to your tax advisor when preparing your taxes. Before the program you choose will accept a new horse, you will likely have to fill out an application form.

As part of the application, you might have to get your horse appraised by a certified equine appraiser. Here are some things the appraiser might consider:

Fair market value – what similar horses are priced at in your area
Disposition
Pedigree
Show record
Awards and prize values
Offspring records (if any)
Health
Age
Conformation
Breed & type characteristics
When hiring an equine appraiser, look for someone with experience with your type of horse and riding. Ask for references and resumes from appraisers before making your decision. When you decide on an appraiser, be sure to have a contract with all the details: when the appraisal will take place, where it will be, how much it will cost, whether the appraiser will provide additional photos for your records, how many copies of the appraiser’s report will be issued and what the report will be based on.

Once you’ve gotten an appraisal and your application has been approved, the institution might take your horse on a trial basis. This is a good thing! It means that they are making sure your horse fits with their program. If your horse goes on trial, make sure you get an agreement in writing stating how long the trial period is for, how the horse will be transported to and from the facility, what the institution will do with the horse during the trial period and when they will let you know if they have decided to keep the horse or not.

If the institution decides to accept the horse after the trial period, you will once again be asked to fill out some paperwork to transfer title & ownership of the horse. You will also need to give them any registration papers you have for the horse: breed registrations, USEF cards, passports, and so on. When you transfer title and ownership make sure you carefully read the agreement! There are many horse owners who have donated their horses to institutions, only to learn later that their horse was resold for a comparatively small amount of money. Don’t put yourself in a position where you regret your decision – make sure you ask any questions you have and are fully informed.

Keep in mind: this is not a private sale. When you have a sales contract between private parties you will have some control over the provisions of that contract. When you donate a horse, however, you will be bound by the agreement that the institution provides, which is most likely one that was written up by the legal counsel for the institution. It is meant to protect the institution and its fiduciary interests and you will not be able to make changes. Remember that riding programs deal with many horses at a time and they cannot have individualized donation agreements for every horse that they take. That being said, one thing you might want to pay particular attention to in the agreement is a “right of first refusal” clause. Such a clause states that the donor will have the first option to take the horse back, should the institution no longer have a use for the horse.

After you donate
Once the donation process is complete, make sure you keep copies of all the paperwork: the appraisal, the trial agreement, and the donation agreement itself. Bring copies to your tax professional for use in filing taxes. If you want to have the option to take the horse back, it’s not a bad idea to check in with the staff on a regular basis to see how the horse is doing and to remind them to please call you first. Most institutions won’t mind – in fact, they’ll appreciate that you take a continuing interest in the horse.

Donating a horse can be a hard decision. Be sure to find the best possible match for your horse, and take all the proper precautions. Also remember that in most cases, by donating your horse you are providing people with the opportunity to ride and learn from your horse – people who might not otherwise get the chance.

For more of Kjirsten’s articles on equine law, click the LAW hashtag at the top of this page, or click here to open a list.

Kjirsten Lee, J.D., is an equine attorney with rb LEGAL, LLC, in Golden Valley, MN. She has written on topics such as the Horse Protection Act and use of drugs in racehorses, as well as general legal issues that horse people may encounter. You can follow her on Twitter at .

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