This information is then reported by the various partners, according to their share or agreement with another partner, on their individual return. Because the definition of a partnership is very broad under tax laws, a potential investor must be very careful to determine whether the agreement he or she enters into actually constitutes a partnership. If so, he should make sure that the partnership files the information return with the IRS in order to avoid a penalty for late filing. His profit will be in direct relationship to the money he makes for you, the limited partner. Be sure you understand your share of the partnership - review it with your accountant or lawyer if it would make you more comfortable.
Horses are exciting, and so is being a part of it.
Here you can watch your investment give birth, grow, be sold, and probably at some future date, make money. A lot of people figure it beats sitting on the curb looking at the bank window wondering what your money is doing. As long as the equine industry itself remains sound, partnerships, as a form of horse ownership, will continue to flourish. This is especially true as the prices for horses continue to escalate. Profits from price appreciation have outstripped inflation by seven to 24 percent every year since 1963, regardless of state of the economy or interest rates.