LLC Form 1065 - Horse Racing and Breeding

Forum|Forum|7 months ago
November 11, 2025
2 replies
8 views

LLC Client (Form 1065 Filer), is in the business of horse racing and breeding. What schedule is used to report the business activity? Is Schedule F, Profit or Loss From Farming used or the general Form 1065?

ProSeries Professional

Jim-from-Ohio

Intuit Community Champion

Horse breeding activities are generally reported on Schedule F (Profit or Loss From Farming), while horse racing activities are typically reported on Schedule C (Profit or Loss From Business).

That is for 1040s but for 1065's it can still be allocated F and face of 1065

The distinction is based on the nature of the activity:

Schedule F is used for farming activities, which the IRS considers horse breeding, raising, and selling to be.
Schedule C is used for general business activities, such as those related to racing operations with trainers, jockeys, and associated fees. Winnings from horse racing may also be reported on Schedule C if it is a business activity, or on Form 1040 (Schedule 1) if considered gambling winnings.

If you are involved in both breeding and racing, it is important to keep detailed records and allocate income and expenses appropriately for each activity to ensure correct tax reporting.

sjrcpa

Level 15

And if you are breeding horses you will race?

The more I know the more I don’t know.

IRonMaN

Level 15

"And if you are breeding horses you will race?"

I don't run as fast as I used to so I think a horse would beat me, but I am willing to give it a try.

Slava Ukraini!

T

Terry53029

Intuit Community Champion

a 1065 is used for a partnership, ( at least two partners) if a single member LLC then you would use 1040 schedule F for breeding, and income and expenses for breeding. Use a schedule C for the racing side.

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