Maricopa Community Colleges  EQS130   19916-19972 
Official Course Description: MCCCD Approval: 12/11/90
EQS130 19916-19972 LEC 3 Credit(s) 3 Period(s)
Equine Business Practices
Types of records used in the equine business. Includes record keeping systems and basic accounting principles; taxes; personnel management practices; computer programs for record keeping and operations management. Prerequisites: None.
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MCCCD Official Course Competencies:
 
EQS130   19916-19972 Equine Business Practices
1. Analyze and determine differences between a horse business and a hobby operation. (I)
2. Identify methods of conducting business and develop a viable business plan based on accounting and financial record-keeping systems applicable to the horse industry. (II)
3. Analyze the legalities involved in managing a horse business. (III)
4. Evaluate liabilities applicable to horseowners and horse farm owners/managers. (IV)
5. Compare business practices used when horses are held for sale, sport, or breeding activities, including legalities of selling or buying an unborn foal and selling horses on the installment plan. (V)
6. Identify various types of insurance applicable to the horse industry, and describe general liability, property, equine mortality, care, custodial, and control insurance. (VI)
7. Evaluate sales, leasing, breeding, boarding, training, and stallion contracts. (VII)
8. Develop a viable equine marketing plan, including identifying the target market, creating an image, and determining the customer base. (VIII)
9. Identify and compare various types of horse farm record keeping systems. (IX)
10. Describe how computers are used in the horse industry, including use in horse farm management. (X)
11. Describe federal laws governing personnel practices, to include employees, taxes, FICA, and immigration. (XI)
12. Describe the laws governing capital gains treatment on the sale or exchange of horses and other business property, depreciation recapture, deferred payment, and installment sales. (XII)
13. Analyze depreciation schedules and identify the process by which depreciation is calculated. (XIII)
14. Compare different methods of accounting as they apply to farm income and expense deductions. (XIV)
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MCCCD Official Course Outline:
 
EQS130   19916-19972 Equine Business Practices
    I. Equine Business Versus Hobby
        A. Background of the Law
        B. Qualifying as a Business
        C. Two-Profit-Years-Out-of-Seven
        D. Course Decisions
      II. Equine Business Plan
          A. Methods Used in Conducting Business
          B. Recordkeeping Systems
            1. Accounting
            2. Financial
        III. Legalities of Managing a Horse Business
            A. Evaluating the Business
            B. Choosing the Entity Method
              1. Proprietorship
              2. Partnership
              3. Corporation
              4. Syndication
            C. Licenses
            D. Fictitious Business Names
            E. Health Department Requirement
            F. Getting into the Horse Business
              1. Pitfalls
              2. Suggestions
          IV. Liabilities of the Horseman
              A. Legal Responsibilities of Horse Ownership
              B. Livery Stables
              C. Loose Horses
              D. Liability of Horse Breeder as a Land Owner (or Lessee)
            V. Equine Business Practices
                A. Purchasing a Horse
                B. Selling Horses
                C. Uniform Commercial Code
                D. Warranties to be Concerned About in Buying/Selling
                E. Selling or Buying an Unborn Foal
                F. Selling a Horse on the Installment Plan
              VI. Equine Insurance
                  A. Property Insurance
                  B. General Liability
                  C. Umbrella
                  D. Care, Custody, and Control
                  E. Horse Mortality
                  F. Worker's Compensation
                  G. Special Event
                VII. Equine Contracts
                    A. Purchase and Sale of Horse
                    B. Lease Agreements
                    C. Types of Contracts
                      1. Breeding
                      2. Boarding
                      3. Training
                      4. Stallion
                  VIII. Equine Marketing Plan
                      A. Definition of Marketing
                      B. Identifying the Market
                      C. Educating the Public
                      D. Creating an Image
                      E. Customer Base
                    IX. Horse Farm Records
                        A. Registry Forms and Reports
                        B. Other Important Forms
                        C. Identification Programs
                        D. Daily Records
                        E. Permanent Records
                        F. Special Information File
                      X. Computers and the Horse Industry
                          A. Types of Software
                            1. Equine Management
                            2. Boarding/Training Finances
                            3. Breeding
                            4. Horse Recordkeeping
                          B. Demonstration of Computer Recordkeeping Systems
                        XI. Personnel Practices
                            A. Employees
                            B. Independent Contractors
                            C. Taxes
                              1. Employment
                              2. Unemployment
                              3. Withholding
                              4. Self-employment
                            D. FICA
                            E. Immigration Law
                          XII. Sales and Exchanges of Horses and Other Business Property
                              A. General
                              B. Capital Gains Treatment
                              C. Determining Tax Basis of Property
                              D. Depreciation Recapture
                              E. Deferred Payment
                              F. Installment Sales
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