The IRS will look for ways to disallow these expenses. If it can be determined that the ranch is actually operated for personal pleasure and not for a profit, the deductions will be denied. Together they purchase the ranch with the trainer living there. The chiropractor lives 50 miles away. The chiropractor rarely rides the horses and spends little time at the facility.
Several years pass.
Ultimately the chiropractor sells the horses and closes shop. The fact that an arrangement was made with a professional horse breeder and trainer, and the chiropractor closed down the operation as it was not profitable, are points in favor of the chiropractor in establishing the ranch as truly a business operation. The losses should be deductible against other income. The key is to show an intent to make a profit. There is an IRS test.