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☛ Lee Dale dies at age 82 8-16-18

Posted by on Aug 16, 2018 in BREAKING NEWS, CUTTING NEWS, FROM THE EDITOR, INDUSTRY NEWS, WHO, WHAT & WHERE | 1 comment

JOY LEE DALE PASSES AWAY AT AGE 82

 

LEE WAS ONE OF THE ORIGINAL SALE CATALOG PUBLISHERS AND CO-OWNED A SALE COMPANY

 

By Glory Ann Kurtz
Aug. 16, 2018
Corrected Aug. 17, 2018

 

It was a sad day for me today when I got the phone call that Joy Lee Dale had passed away at the Senior Care home in Decatur, Texas. She was 82 and would have been 83 on Sept. 25 when it would have been her birthday. She had been paralyzed and in a nursing home for the past 20-plus years following a stroke.

 

I know there are a lot of ole’ timers who love cutting and also knew and loved Lee that would want to know that she passed away this morning. If you have any personal, fun stories about Lee, please send them to me and I will post them.

 

I met Lee when I was editor of Quarter Horse News and she was involved in the sale horse business. She and her husband, Dub Dale, both loved and rode cutting horses and had been in the sale horse business; however, when he left and the sale closed down, she decided to publish sale horse catalogs – which she had been doing all along for their sales.

 

She was one of only a very few people who were producing horse sale catalogs with pages with full pedigrees at the time – and she did it using a small, old computer, gathering information from cutting horse events. She sent me the information and I typed the cutting horse pedigree sheets for her.

 

After she suffered a stroke that left her with her entire left side paralyzed, she was in a nursing home in Justin. However, after her sister, Susie, died and they gave me her power of attorney, I moved her to Senior Care in Decatur, which was much newer, nicer and next to the hospital. I could then see her more often as I went to the hospital for water aerobics three days a week.

 

Lee and her best friend, Ann Neely, were top sales ladies at a Windy Ryon’s Western store on Fort Worth’s Northside (now called Cavenders). They were top sales women because they had so much personality and knew so many people.  However, Ann also passed away several years ago while sleeping in a chair in her home.

 

I was fortunate to know Lee for years and had her medical power of attorney. However, I was devastated today when I received the news that she had passed away this morning. I am in Colorado for the summer and am making arrangements from here.

 

Since Lee has no living relatives, I’m the only one left to make a decision, I have made arrangements to have her cremated and I will be putting half her ashes on her sister’s grave and sprinkling the rest on my horse pasture in Grandview. She always loved horses and I’ll feel good that I still have her close. I think she would be okay with that decision. I hope I’m right!

 

 

 

 

 

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☛ The ABCs of hiring a professional horse trainer 8-12-18

Posted by on Aug 12, 2018 in BREAKING NEWS, COW HORSE NEWS, CUTTING NEWS, HORSE NEWS, INDUSTRY NEWS, REINING NEWS, RICK'S CORNER, WHO, WHAT & WHERE | 5 comments

THE ABC’S OF HIRING A PROFESSIONAL HORSE TRAINER

 

DON’T BE A FOOL WITH YOUR MONEY!

 

 

By Richard E. “Rick” Dennis
Aug. 12, 2018

 

So, you’ve made the decision to enter the horse industry. Your reasoning may include a myriad of ideological thought processes, including for an investment purpose, just to enjoy the equestrian life, a reenactment with the Old West lifestyle, or simply your love of horses and the ability to engage with one of the most marvelous animals on planet earth.

 

Regardless of what your reasoning is, one of the most important investment decisions the equestrian will make, besides the horse, is locating and retaining the right professional horse trainer. However, and for the record, the horse industry, unlike other professions requiring either a college degree or a degree from a vo-tech school, professional horse trainers occupy a unique niche in our society: “a niche that’s virtually unregulated and likened to the unregulated society of the Wild West.”

 

In a sense, horse trainers are unique in that they learn their trade on a generational basis, i.e., the training techniques are passed down from generation-to-generation. However, and contrary to popular belief, horse trainers aren’t Gods and they can’t walk on water! In some cases they think they are lawyers but a majority percentage dictates they aren’t one of those either.

 

Another satirical moment in history has taught us that some horse trainers think they can run a multi-million-dollar 501(c)3 nonprofit but they can’t do that either.

 

However and for the record, there are a lot of really good horse trainers out there; however, the corrupt, immoral, fraudulent and imbecilic individuals operating within the industry, as well as the ones causing the abhorrent abuses and fraudulent activities, are unfairly stigmatizing the honorable ones. For the record, not all horse trainers are created equally or share the same moralistic values of trust, duty of loyalty, honor and country.

 

Therefore, there aren’t any degrees to obtain, either from an accredited college or a vo-tech school, to vouch for their training. And there aren’t any governmental or 501(c)3 non-profit horse organization licensing requirements that I’m aware of, except the Thoroughbred racing industry, which is designed to regulate a horse trainer within a specific industry, as well as the AQHA Professional Horseman group. Unfortunately, in today’s society and especially in the performance horse industry, the only requirements for an individual desiring to be a professional horse trainer is to hang out his or her shingle and proclaim, “Today, I’m a professional horse trainer.”

 

In an abundance of caution, the investor or newcomer to the industry should also be aware that there’s absolutely no way for an individual to know whether or not an horse trainer has a prior criminal history or an existing criminal record of wrong doing, unless you ask, or the trainer agrees to a background check. Don’t rely on the 501(c)3 nonprofit to assist you in this matter because, to my knowledge, there’s no rule in their rule books to address pre-existing criminal record exclusions, except for “horse abuse.”

 

In my line of work, as a security consultant and risk analyst, I have to undergo an annual background check, including a urine drug screen, fingerprints check and a financial checkup, just to stay within my licensing requirements.  Therefore, my question is, “If I have to undergo those checks to operate within my jurisdiction, why shouldn’t horse trainers have to be subjected to the same scrutiny, especially in lieu of the fact that in some cases, horse trainers operate using millions of dollars of other peoples’ money?”

 

WHAT IS NOT REQUIRED OF TRAINERS?

Individual background checks are essential in maintaining safety standards within certain industries of our society; however, unfortunately it’s not a requirement with performance horse trainers in the reining, cutting or cow horse industry. Equally, it’s also not a requirement for an individual to be subjected to pre-access, random, probable-cause, or post-accident individual drug and alcohol screening requirements.

 

WHAT IS REQUIRED OF TRAINERS?

However, there are governmental licensing and taxing requirements for the individual proclaiming to be a professional horse trainer. More specifically, the professional horse trainer has to adhere to the taxing requirementsof the state he or she operates in, as well as the federal government taxing requirements for both the individual and the business name he or she is operating under. For example, in the event the professional horse trainer’s name is John Doe and he is operating a (dba) “doing business as” or “an assumed name” business, i.e., John Doe Cutting Horses, then, he or she has to register his or her business with the secretary of state that he or she is operating in, as well as the county the business is located in. This is also the same for partnerships.

 

In the absence of legal registration requirements, the owner of the (dba) or “an assumed name” doesn’t have the legal protections provided by the legal requirements or have the state’s authority to operate a business in the state of the domicile; nor does the owner or operator have the legal authority to engage in contracts or enforce contracts while being unregistered, such as filing or maintaining lawsuits within a specific legal jurisdiction. Furthermore, the individual operating an unregistered or non-legal business has to absorb all of the liability for operating an unregistered business, by his or herself.

 

Each state and county has their own licensing requirements, so the best avenue for obtaining this information is through either the Secretary of State’s office or the County Clerk’s office of your county.

 

RESEARCH:

Therefore, your only available option is left up to you to conduct your own research.  For the record, an individual’s failure to register a (dba) “or an assumed name” when required to do so, could result in fines and penalties to the trainer, which also can include incarceration, prosecution and imprisonment upon a guilty verdict.

 

One essential element, which appears to have escaped most 501(c)3 nonprofits, is the absence of enforcement rules to govern the moral behavior of certain individuals in the industry. This has also contributed to the withdrawal of existing members and is perhaps stymying new investors and members. Therefore, this analytical reasoning can be deduced as one of the “direct causes” to the rapid decline of participants and members in the specific performance horse groups.

 

Your Research:

The due-diligence doesn’t end after you locate a prospective training facility and horse trainer. The next step is to gather as much background or intelligence information as you can on the training facility itself, as well as the trainer. This can be done by:

 

  1. Ask for references. An excellent place to start is talking to prior or existing customers to find out what their experiences with a specific trainer have been. This can be done by asking the professional horse trainer for a list of references.

 

  1. Check with the Better Business Bureau. If any complaints were filed against an individual or his or her company over the years, this information will be located with this agency.

 

  1. Check with your state, county or parish licensing agencies for a particular business license requirement. Ascertain whether or not this particular individual’s business is currently registered and up-to-date, if required.

 

  1. Check with the local sheriff’s office or the SPCA to ascertain whether or not your potential trainer has ever had an animal abuse complaint filed against him or her. If so, obtain the judicial disposition of the case.

 

  1. There are two ways to research an individual’s background.1) Do it yourself or hire someone to do it after you obtain a signed release from the trainer, or 2) simply go to the local civil records section of the court house yourself and ask the clerk of court in the civil records section for all public arrest and filed lawsuit records for a specific individual. After all, arrest and lawsuit records are public documents.

 

B – Business Contracts and Insurance Policies

 

         The Business Contract:

 

  1. One of the most vital aspects of any business arrangement in today’s society is reducing the business arrangements to legal and notarized writings. A competent attorney at law should be used to draw-up the particulars for you.

 

  1. NEVERexecute or sign a “hand-written” contractual document with anyone. This type of scribed document is suspect in the first place. You may be signing a scheme to defraud, which has been proven factual in certain filed legal documents and circumstances. After all, you need all the legal protection you can muster-up in the event a dispute arises and you require an attorney at law to enforce a specific performance clause in the contract.

 

  1. A contract keeps everything clean and neat.If a trainer won’t sign a contract, this is a “red flag,” simply walk away and find someone who will.

 

         Business Insurance:

 

  1. Unfortunately in today’s marketplace, we all need insurance to protect our valuable assets. This is especially true with a horse.As my old veterinarian use to say, “A horse is just an accident looking for somewhere to happen.”  Therefore, common sense tells us “We all need to insure our horses while they’re in training.”

 

  1. Common sense also tells us, that the training facility, where the horse is boarded, as well as the trainer, should also have a liability insurance policy in the unlikely event that an incident happens and client damages can be recouped for injury, illness, or even death to a particular horse, while under trainer care, custody and control.

 

  1. As a Risk Manager, I feel two of the most important aspects of any insurance liability policy are: a) having the client named as “additionally insured” on the trainer’s liability policy and b) an “error and omissions” clause. Still another important aspect, is to have the insurance company notify the client in the event of policy cancellation and/or at least (30) days in advance of the cancellation date. This provision can be included in the business contract between the parties.

 

C – Maintaining Contact With Your Horse While It Is In Training:

 

As a Risk Manager, I believe in the practice of, “seeing what you getand what you’re paying for.”  Since, you’re paying the bills, it’s a good practice to make regular trips to see your horse while it’s in training. That way, you can see for yourself exactly how the horse is being trained and how the horse is progressing during training with the trainer. If you aren’t satisfied with the horse’s progression, it’s a good idea to speak to the trainer about it.

 

NEVER, get caught in the trap of being a victim or a life donator to a trainer’s 401 K retirement plan, especially with a horse that’s never going to make it in a specific performance horse discipline in the first place. It is a fact of life that not all horses are destined to become “superstars” no matter what the breeding sheet tells you and no matter how long they are in training. Therefore, your only reliance on this fact is in the opinion of your horse trainer’s credibility. That is, unless you’re an experienced horseman yourself, as well as being a good judge of horseflesh and training methods. So live by this rule: “Trust But Verify.”

 

Making regular visits to the horse-training facility will allow you to judge that for yourself. If your horse trainer objects to your regular visits to ascertain how your horse is being treated and trained, simply find another horse trainer. The plain truth is: Your trainer is going to know in very short order whether your horse is a worthy candidate or not for a specific horse discipline or event in the performance horse industry. It’s not going to take a year or longer.

 

D – Money Earnings Split:

 

NEVER engage in a practice where a horse trainer is allowed to have a winning’s check issued in his or her name and NEVER opt for a deal with the trainer to maintain control of your share of earnings and apply it to your bill balance. The “pitfall” of this accounting method is that you’re relying on the horse trainer to act as your accountant. This is exactly how financial disputes arise in the first place. Be smarter than that!  Essentially, the horse trainer is your “contract laborer,” not an agent for your accountant.  The proper way to handle the “money/split” is for the client to receive the earnings’ check, pay the trainer his or her portion and issue the trainer an IRS form 1099 form at the end of the year for the tax filing purposes of both parties.

 

The client should always pay their board, training and entry fees separate and apart from money-earning check payouts. At the end of the year, it’s the client’s responsibility to issue the IRS form1099 to the trainer, which includes what you paid him or her – not, vice-versa.

 

E – Fraudulent Acts:

 

If at anytime you determine your trainer is “padding” invoices, i.e., adding expenses that aren’t usual and customary, this is a red flag! Immediately address this with your trainer and refuse to pay the bill until it is rectified. If this practice persists after the initial finding, fire the trainer and find someone else. Beware, of a facility that desires to provide you with multiple months’ billing all at once – or even on a quarterly, semi-annual, bi-annual or annual basis. This should raise a serious red flag to the client as it relates to the accuracies of the contents identified as billable services.

 

Another avenue available to the individual, who has been the victim of a fraudulent act, is to consult with law enforcement, rather than a lawyer, for asset recovery. In my opinion, those identified as operating fraudulent business practices should be evicted from the business on a permanent basis.

 

F – Money-back Guarantee:

 

If the trainer you pick is the really “fire-bang wizard” he or she proclaims, then speak to them about a “Money-Back Guarantee” on their training. At my company, I offer a “Money-Back-Guarantee” on all of my business products and services, including horse training. The guarantee states: “If a Client isn’t completely satisfied with my products or services, they’re entitled to a full refund, or a “money-back guarantee.”  If the trainer balks, you might want to find another trainer. To date, I haven’t returned anyone’s money and I’ve trained a lot of horses in my time. This separates the really confident trainers from the wanna-be’s, “so-to-speak.”

 

Overall, the bad trainers in the industry are making the good trainers and the industry suffer. That’s a sad commentary for the industry. In recent years I’ve seen highly publicized increases in animal abuse cases among trainers, as well as an increase in lawsuits, because of business dealings that have gone bad or have been fraudulent.

 

One trainer to avoid is the one who always wants you to engage in some sort of partnership with him or her. This is just another way for them to use your money. From what I can tell, most of those partnerships don’t have happy endings. Therefore, be frugal with your money, diligent in your research and prudent in your business practices and you’ll more than likely be happy in the industry.

 

Another option for guidance is to purchase my book: “THE AMERICAN HORSE INDUSTRY, Avoiding the Pitfalls.”  This book was written to address the many “Pitfalls” the equine enthusiast may encounter in the industry, as well as the ways to avoid them, including the ones in this article.

 

Until Next Time, Keep ‘Em Between the Bridle!

 

WIND RIVER COMPANY LLC

Richard E. “Rick” Dennis
Managing Member
Professional Reined Cow Horse Trainer.
Freelance Writer and Author
Office/Mobile: (985) 630-3500
Email: windrivercompany.rd@gmail.com
Web Site: http://www.richardedennis.net

DIVISIONS:
Wind River Security, Personal Protection, Risk Management, and Analysis.
Wind River Employee Drug and Alcohol Testing Consortium Services.
Wind River Stock Horses – Breeding Training Exhibition and Sales.

 

 

 

 

 

 

 

 

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☛ A letter to readers of allaboutcutting.net 8-11-18

Posted by on Aug 11, 2018 in BREAKING NEWS, CUTTING NEWS, HORSE ORGANIZATIONS, TO THE EDITOR, WHO, WHAT & WHERE | 19 comments

August 6, 2018

To: Readers of Allaboutcutting.net

Let me start by saying thank you to Executive Committee for addressing the concerns that my colleagues and I have raised in the past. The changes in personnel that you have made were very positive and much needed. However, the way the Dufurrena fiasco has been handled has been an unbelievable disgrace to the image of the NCHA and horse industry in general!

 

I spent MANY days at the Summer Spectacular visiting with many people, and the talk of trainers, owners, and spectators is how lenient the penalty was for the Dufurrena family! As we all know, the non-pro ownership rules are considered to be some of the most sacred rules of our association, and are not meant to be bent, much less broken. And if broken, the penalty in the past has meant lifetime suspensions. In some of my conversations with fellow directors and committee members, I found it appalling to learn about how our president, Phil Rapp, was strongly lobbying for no sanctions to be brought against the Dufurrenas, and Committee member Kathy Daughn suggested only a 30 day suspension!?!?

REALLY?!?! Thankfully, Frank Diehl was not complicit in this attempt at a miscarriage of justice, and stood his ground for appropriate sanctions. Furthermore, in stead of feeling lucky for the light punishment they received, Ed brazenly ignored the suspension rules by being an “Agent” of horses showing at the Spectacular, and also violated suspension rules by trying to work horses in the practice pen and flag, two separate times, even to the point that required the police asking him to leave!…However, he did get his horse worked…by our president, Phil Rapp. Now, ask yourselves, “How Stupid does that look?”

 

We are in a time where the association desperately needs to convince its members and the public that there is a new commitment to establishing credibility, fairness, and professionalism. Instead, we look like a group of mentally challenged cowboys! But wait, there’s more!…On the website, allaboutcutting.net, our president elect, Ron Pietrafeso, comments that there were no suspension violations involving Ed, and it was no big deal, when in fact, there was a formal complaint filed and signed by a prominent member.

 

These infractions can NOT be ignored or swept under the rug!! If the penalty is not assessed as prescribed in the suspension order, this will be looked upon as a new all-time low, and carry with it a protracted campaign to make our entire membership aware of the many nuances that are at play here. With our president receiving free breedings from the Dufurrenas to Stevie Ray Vaughn, lobbying for no sanctions, maintaining that Brandon and Rieta knew nothing of the fraudulaent ownership (before there were even any hearings), working Ed’s horse for him, and our president elect’s claim that there were no suspension violations when there has been a signed formal complaint in front of witnesses, leads to utter discust in how our association is being run.

 

The above, when taken in totality, clearly demonstrates the effort being made to protect the Dufurennas. It also raises the question as to what Ed Duffurenna has over our governing body. Nonetheless, everyone whom I spoke with, is demanding that the cover up by our “leaders” is stopped, the NCHA enforces their own rules, and the ship is righted! In all my years in the Cutting horse business and as a Director, I never thought I would see our principals crushed, our reputation marred, and our integrity questioned. I am sad to say that I am embarrassed right now to be a member of our association, and I am sickened about our state of affairs. Can someone help?…This is an emergency!!

Name withheld due to retaliation against those who speak the truth!

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☛ Tommy Doty dies in freak auto accident 8-10-18

Posted by on Aug 10, 2018 in BREAKING NEWS, CUTTING NEWS, WHO, WHAT & WHERE | 0 comments

TOMMY DOTY DIES IN FREAK AUTO ACCIDENT 

 

By Glory Ann Kurtz
Aug. 10, 2018

It’s always hard to write obituaries; however, it’s extra hard when it is an obituary about a long-time friend. Even though I had moved out of Wise County, I still remember all of Bob and my old friends who still live there.

 

Tommy Doty, Cottondale, Texas, was one of those old friends that are included in my memories of my friends in Wise County. Tommy, at age 65, died in a freak accident on Wednesday, Aug. 8 in Decatur, Texas.

 

According to his friends, he had driven to Decatur to visit a realtor, when he drove down the wrong driveway and over the edge of the road into a pond. Friends pulled him out and tried to give him CPR; however, they couldn’t get any water out of his lungs. When the EMTs arrived, they could not revive him either. An autopsy report is pending on what the actual cause of death was since he had a heart attack a short time ago and went through triple by-pass surgery.

 

Tommy was born on Feb. 8, 1953 to Finis Earl and Louise Estelle (Hicks) Doty in Cleburne, Texas. He worked at Jerry’s Chevrolet for over 10 years in auto sales. He was a member of the First Baptist Church of Cottondale, Texas.

 

He was a longtime member of the National Rifle Association and loved being outdoors hunting and fishing. He also loved to play shuffleboard. He also enjoyed horses, a love that he shared with my husband and me.

 

Tommy was preceded in death by his father Finis Earl Doty. He leaves behind his daughters Jenifer Miller, Northlake, Texas; Stephanie Rowe and husband John of Haslet; his grandchildren Victoria Miller, Hannah Miller and Parker Rowe; his sister Becky Ivey of Burleson; his mother Louise Estelle Doty of Joshua; numerous nieces, nephews, cousins and a host of friends.

 

Tommy’s family will receive friends from 5-7 p.m., Saturday, Aug. 11, at Hawkins Funeral Home at 405 E. Main St., Decatur, Texas. Rev. Charles Pugh will officiate. Pallbearers include Asa Johnson Jr., Richard Kimball, Marshall Hicks, Matt Reynolds, Gary Howell, Marshall Hicks Jr., and John Rowe.

 

Tommy’s funeral will be at 2 p.m. Sunday, Aug. 12, 2018 at the First Baptist Church of Cottondale.

 

 

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☛ When is a gift really a gift? 8-7-18

Posted by on Aug 7, 2018 in BREAKING NEWS, COW HORSE NEWS, CUTTING NEWS, EQUI-VOICE, HORSE NEWS, INDUSTRY NEWS, REINING NEWS, RICK'S CORNER, RODEO & BULLRIDING NEWS, WHO, WHAT & WHERE | 5 comments

WHEN’S YOUR GIFT, REALLY A GIFT?

 

Which Gifts Are Taxable and What Can Be Excluded?

 

By Richard E. “Rick” Dennis
Aug. 7, 2018

 

Have you given or received a large gift? Do you know what the tax consequences are? You may be subject to the 40% Federal Gift Tax.

 

According to the IRS, a gift is “Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money’s worth) is not received in return.”

 

The gift tax is the responsibility of the person who gives a gift (i.e., the donor), and the amount of tax due is based on the value of their gift. The person who receives a gift (i.e., the donee) is generally not responsible for paying the gift tax. However, if the donor does not pay the gift tax, the donee may have to pay the tax instead.

 

The gift tax was implemented in order to stop people from dodging the Estate Tax by giving away all of their money before death. While most individuals don’t need to worry about having to pay the gift tax, there are a lot of people who neglect to file the proper paperwork.

 

Seven things you should know about the Federal gift tax:

 

  1. Gifts to Family Members Count. The gift tax and exclusion limit (below) apply whether you are making the gift to a complete stranger, a nephew or your own children. The only person you can give a gift to that is exempt from the gift tax is your spouse. Gifts to your spouse qualify for the marital deduction.

 

  1. There Is an Annual Gift Tax Exclusion.You do not have to pay tax on gifts that are less than the annual exclusion limit, which generally changes every year. Currently, the annual exclusion for 2018 is $15,000 per recipient, up from the previous $14,000 exclusion limit. In other words, you can give up to $15,000 to each of your children this year without having to pay any gift tax. However, anything of value given as a gift and the amount exceeding the exclusion limit is taxable.

 

  1. There Are Also: Educational and Medical Exclusions. Payments that you make on someone’s behalf for qualified tuition or medical expenses do not count toward the annual limit for gift tax purposes. However, your payment(s) must be made directly to a qualifying educational organization or medical care provider in order to qualify for the exclusion. You can also place funds directly into a 529-education savings plan to avoid the gift tax — but note that certain rules apply.

 

  1. You May Need to File a Gift Tax Return (Form 709). In general, you must file a Federal gift tax return (IRS Form 709) if you gave someone more than $15,000 during the 2018 calendar year. In some cases, you are required to file Form 709 even if your gift was below the $15,000 annual exclusion. Note that only individuals are responsible for filing gift tax returns — corporations or trusts that make gifts will pass the filing and payment responsibilities onto their individual stockholders or beneficiaries. Additionally, a married couple cannot file a joint gift tax return.

 

Form 709 is an annual return that is due by April 15 of the year after the gift was made. While this is the same deadline as the individual income tax return (Form 1040), the gift tax return must be filed separately. You can request a 6-month filing extension for your gift tax return with Form 8892 (Application for Extension of Time to File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax). Furthermore, if you use Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) to obtain a tax extension for your 1040 return, you will automatically receive an extension for Form 709.

 

  1. Married Couples Can Give Twice As Much.Spouses can each give up to $15,000 to the same recipient and still stay within the annual exclusion threshold. Together, a married couple can give $30,000 to each donee without incurring the gift tax. Most tax professionals recommend that married couples give money in the form of two separate checks, and each signed by one of the spouses, to avoid any confusion.

 

  1. Each Donor Has a Lifetime Exemption.This refers to the total amount that an individual can give away during their entire lifetime. If your gift exceeds the $15,000 annual threshold, it must be reported as a taxable gift on Form 709 — however, that doesn’t necessarily mean you’ll have to pay the gift tax. Instead, you can apply the gift toward your lifetime exclusion from the Federal estate tax.

 

The “basic exclusion” (also known as the “unified credit”) represents both the lifetime gift tax exemption and the estate tax exclusion, signified as a total amount of $5.34 million. The current law allows individuals to give away up to $5.34 million over their lifetime without having to pay gift or estate taxes.

 

But keep in mind; any portion that’s used to avoid the gift tax reduces the amount that will be exempt from estate tax. For example, if you used $2 million of the exemptions to make taxable gifts during your lifetime, you will only be able to exclude $3.34 million from the estate tax. If you surpass the $5.34 million limit, you (or your heirs) will have to pay up to 40% tax.

 

You can give someone $15,000 per year and it won’t affect your lifetime exemption (because gifts below the annual threshold are not considered taxable). If you exceed the $15,000 annual gift tax threshold, you must file Form 709 and report the amount that counts against your lifetime exemption. You should also hold onto any relevant paperwork so your heirs can properly compute the estate tax later.

 

  1. Promotional Gifts Aren’t Considered “Gifts.”If you receive a gift as part of a promotion — for example, a car is given away to every member of the studio audience — then it does not count as a “gift” by IRS standards because the giver is getting something in return, namely self-promotion. This means that the tax burden for a promotional gift falls on the recipient (because it increases their wealth) and is not eligible for the annual gift tax exclusion. Example, if you give a horse as a gift for promotional purposes it may be disqualified under the gift tax law and may not be considered a gift at all, e.g., if the horse is excluded from showing under certain circumstances, and providing it as a gift is your alternative to allow promotion to continue, it may not qualify as a gift under IRS tax law.  Check with your CPA or the IRS.

 

By the same token, if your providing a gift to someone for a “self-serving purpose,e.g., a house – in the event an individual has IRS tax issues, then this may be considered tax evasion and the one who knowingly receive such a gift under this circumstance to avoid a tax lien or seizure may be considered a co-conspirator.  Therefore, its imperative for the recipients of a large gift to be fully cognizant of any and/or all prior motives the donor may have in providing the gift.  It’s especially important for the recipient to have a fully executed and notarized IRS form 709 in his or her possession, and upon taking possession of the gift.  IRS requires a form 709 to be filled out for each gift whose fair market value exceeds the $15,000 exclusion.

 

In closing, please be advised that it’s always prudent business practices to have a thorough understanding what your getting yourself into before you do it.  Always, “Trust, But Verify.”

 

“Until Next Time, Keep Em Between The Bridle”

 

WIND RIVER COMPANY LLC
Richard E. “Rick” Dennis CPP
Managing Member
Freelance writer and author
Office/Mobile: (985) 630-3500
Email: windrivercompany@gmail.com
Web Site: http://www.richardedennis.net

 

Divisions:

 

Wind River Security, Personal Protection, Risk Management and Analysis.

Wind River Employee Drug and Alcohol Testing Consortium Services.Wind River Stock Horses – Breeding, Training, Exhibition, and Sales.

 

 

 

 

 

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☛ Understanding and learning about Risk Management 8-1-18

Posted by on Aug 1, 2018 in BREAKING NEWS, COW HORSE NEWS, CUTTING NEWS, HORSE LAWSUITS, HORSE NEWS, HORSE ORGANIZATIONS, INDUSTRY NEWS, LAWSUITS & INDICTMENTS, REINING NEWS, WHO, WHAT & WHERE | 6 comments

UNDERSTANDING AND LEARNING ABOUT RISK MANAGEMENT

 

By Richard E. “Rick” Dennis
Certified Protection Professional
Aug. 1, 2018

 

You’re on the board of a horse association, or the owner of a large horse facility, and a major problem erupts when a situation has risen that could compromise the financial stability of your organization or horse facility and maybe even you personally. Your first instinct? “Call a lawyer!”

 

However, there is another answer called “Risk Management.” Managing your “risk” is what you can do before that major problem erupts. A Risk Management program can save you a lot of money in legal fees so perhaps you should consider counseling with a Risk professional first.

 

Also, a Risk Management program may also have kept you out of the dispute in the first place, by implementing “common-sense and  risk-avoidance practices in your business or personal dealings to heighten your awareness of “Risks in the horse business.”

 

DEFINING RISK MANAGEMENT:

Risk management is the identification, evaluation and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives), followed by coordinated and economical application of resources to minimize, monitor and control the probability or impact of unfortunate events or to maximize the realization of opportunities.

 

Risks can come from various sources including uncertainty in financial markets; threats from project failures (at any phase in design, development, production or sustainment life-cycles); legal liabilities; credit risk; accidents; natural causes and disasters; deliberate attack from an adversary (personal protection) or events of uncertain or unpredictable root-cause. There are two types of events i.e. negative events can be classified as risks while positive events are classified as opportunities.

 

Several risk management standards have been developed, including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards [2][3] methods, definitions and goals which vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments or public health and safety.

 

Strategies to manage threats (uncertainties with negative consequences) typically include identifying the threat, avoiding the threat, reducing the negative effect or probability of the threat and implementing counter-measures which are maintained on a regular basis to prevent future occurrences.

 

OVERVIEW OF RISK MANAGEMENT:

Risk Management is the continuing process to identify, analyze, evaluate and treat loss exposures and monitor risk control and financial resources to mitigate the adverse effects of loss.

 

 

WHO USES RISK MANAGEMENT SERVICES?

There’s a litany of businesses and government agencies that use Risk Management  and Risk Analyst services on a daily basis:

 

  1. Insurance companies: to minimize accidents, loss payouts and maximize loss prevention.

2. Financial institutions: including banks, investment firms, Wall Street and the U.S. Government.

3. The Federal Government: the United States Department of Defense (DOD), including all military applications, as well as: DEA, IRS, FBI, CIA, etc.

4. Law enforcement agencies: to combat crime and dismantle criminal enterprises.

5. The petro-chemical industry: including oil and gas Drilling, production, and refining.

6. The telecommunications industry: including computing.

7. The U.S. mining industries.

8. The U.S. agriculture industry.

9. The U.S. aviation industry.

10. The U.S. marine industry: maritime shipping.

 

 

WHO DOES NOT USE RISK MANAGEMENT SERVICES, EXCEPT ON A VERY LIMITED BASIS?

 

One industry not yet fully indoctrinated and inclined to use Risk Management services is the U.S. equine (horse) industry. Conventionally, when conflicts arise between individuals in the horse industry, the first thing that comes to mind is the injured party utilizes a law firm and a lawyer to settle disputes and provide a legal remedy.

 

In the end, after a very expensive litigation process, the parties usually end up in an “out-of-court” settlement, which may or may not be exactly what the Plaintiff desired. However, there’s another “over-looked option” to the injured party that’s usually never considered and that is: law enforcement processes or criminal arrest and prosecution.

 

During my tenure in the horse industry, I’ve been involved in a litany of legal disputes from a Risk Management and Analyst perspective, where my Risk Analysis expertise has been utilized to offer clients a list of alternative options, i.e. civil, criminal or both, providing referrals, after reviewing the client-provided documents. Instead of a client being limited to just one legal option, e.g., the civil litigation option, I also provide the client with the criminal review option when it’s warranted and applicable. However, only a law enforcement agency or an attorney at law can approve and apply my suggested areas for professional review.

 

However, and for the record, most civil lawyers, adamantly detest hearing the word “law enforcement” used in the same context as “civil litigation,” simply due to the fact that a criminal court can usually perform the function as a criminal prosecutor to convict and imprison the violator, as well as the court acting as a civil lawyer for a recovery of assets for the victim. This one-stop shopping is “free” to the victim and reduces or eliminates the vast amounts of wealth that a civil attorney can accumulate during a lengthy litigation process.

 

Notwithstanding, various criminal applications can be used in the civil litigation process. One of my favorites is the Racketeer Influenced and Corrupt Organizations Act called (RICO). The risks and dangers of the RICO act to the criminal violator is that it carries criminal fines and penalties, civil fines and penalties, as well as asset recover for the victim. However, not all criminal cases are eligible for the RICO Act application. Actually, when I was in Drug Enforcement, this single law is where I honed my skills as a Risk Analyst and learned the most while writing RICO conspiracies for the U.S. Attorney’s Office in New Orleans, Louisiana.

 

Under the guidance of the United States Department of Justice, the Federal Bureau of Investigation and the Internal Revenue Service – Enforcement Division, I learned a myriad of ways to combat crime, protect and recover assets and criminally charge and prosecute criminal violators. Vice-Versa, I’ve transposed those much-needed and learned lessons from my prosecutorial refinements, into the private security sector in performing Risk Management and Risk Analysis services – and at a high success ratio, I might add.

 

 

THE REINCARNATION OF THE WILD WEST:

 

Today, the American Horse Industry seems to be nothing more than a reincarnation of the old “Wild West”, which is directly due to the fact it’s a virtually unregulated industry. Essentially, the only protection members and participants have against roving pilfers and con artists infiltrating the industry is by relying on law enforcement. However, this false security is usually and unfortunately realized as a reactionary approach, meaning after a crime is committed rather than a pro-action approach to prevent crime before it happens. If your reliance is on the 501 (C) (3) nonprofits, then your assurances are certainly misguided – unless the violator is a horse abuser.

 

It’s been observed through time and memory, that nonprofits seem to have no interest in preventing criminals and those with immoral character from entering the industry, even after it’s been proven in court of his or her criminal activity while in the industry. Notwithstanding, the violator usually continues their criminal activity on another victim after being relinquished from a previous violation by an out-of-court settlement. However, there are ways the American Horse enthusiasts can protect themselves and their family members from the “pitfalls” associated with the American horse industry, i.e.:

 

  1. In my book, “THE AMERICAN HORSE INDUSTRY, Avoiding the Pitfalls” I offer real-life solutions to these inherent risks and problems associated with the American Horse Industry. In fact, this book was written entirely from my expertise as a Risk Manager, analyst and former law enforcement professional, as well as my personal knowledge of the con artists I’ve observed at work, who have caused a litany of problems for their unsuspecting victims in the horse industry. One of my favorite cliches that I use in my book is, Trust But Verify.”

 

  1. Whenever you engage in a training, boarding or showing agreement with a boarding facility or horse trainer, have an attorney at law draw up the document in order to cover all the bases ahead of time. If the individual or facility won’t sign a contract agreement, find someone else.

 

  1. In the event you become involved in any circumstance where a law enforcement agency can be used to prosecute an individual for an applicable law violation, i.e. padded billing, mail fraud, wire fraud, conversion, (converting your personal property to his or her use unlawfully, etc.), one should use law enforcement instead of civil litigation as a “first-line-defense” for a remedy. When a person is arrested, prosecuted for a crime and possibly imprisoned and they’re looking at you from behind a set of prison bars, it makes them think twice about pulling another stunt like that on another unsuspecting victim.

 

Until the industry takes a proactive stance of prosecuting frauds, con artists and other criminal violators in the industry and punishing them for their crime, I’m afraid we’ll just see the “same ole’, same ole’.”

 

“Until Next Time, Keep ‘Em Between The Bridle!”

 

WIND RIVER COMPANY LLC
Richard E. “Rick” Dennis (CPP)
Managing Member
Professional Reined Cow Horse Trainer
Quarter Horse Breeder and Enthusiast
Office/Mobile: (985) 630-3500
Email: windrivecompany.rd@gmail.com
Web Site: http://www.richardedennis.net

 

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