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Income received for boarding horses is subject to the Service and Other Activities B&O tax. The stable owner may not deduct the fees associated with veterinarian charges, farrier charges, transportation costs, etc., from the boarding gross income, unless the stable owner is acting as an agent on behalf of the horse owner and has no liability for payment of such expenses, and the stable’s books reflect the principal/agent relationship. See Washington Administrative Code 458-20-111 and -159 for guidelines. If the expenses are “marked up” when charged to the horse owner, the deduction for reimbursed expenses will not be allowed.
