There was plenty of talk about the federal government's "fiscal cliff” negotiations in the past few weeks, including changes in the tax code that would limit itemized deductions.
Fortunately for all of horse racing, the National Thoroughbred Racing Association (NTRA) successfully lobbied so that legislation passed by both the Senate and House of Representatives contained language in Section 68 ©(3) of the tax code that exempts wagering losses from being subject to the newly enacted limitation on itemized deductions.
"I salute our legislative team in Washington,” said Alex Waldrop, president and CEO of the NTRA. "They not only identified this key issue for members of Congress while various fiscal cliff proposals were in their early stages, the team also proposed a solution that was ultimately adopted. While the outcome of these latest negotiations can be viewed as a victory for horseplayers, the issue of comprehensive tax reform is expected to be taken up later this year. The NTRA will continue to work closely on this issue and others affecting horseracing and breeding.”