Because There Can Be More To The Good Life, A Higher Level, A More Abundant Life -
From Mere Wealth To Prosperity
Wealth preserving economic insights make living the best of the good life prudent wealth management
Acquire elite equine assets with just 10% down. Learn how our exclusive Stable Investment Model transforms traditional horse ownership into a structured, net-worth-neutral business asset.
YES Solves Your Equine Economics
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Take your equestrian lifestyle to new heights
Regardless of the breed, equine discipline or your current position:
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casual horse owner,
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serious competitor,
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industry professional,
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equine entrepreneur,
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trainer, breeder, or charity
YES helps horse owners prosper. Equine endeavors can now be more enjoyable & rewarding. Trainers, breeders, investors, & owners are no longer limited by traditional financial constraints and can now say YES to more income, positive cash flow, and long-term profitability from their equine efforts.
Busy Equine & Business Professionals, CPAs, Attorneys, and investment and Wealth Advisors are invited to download the Equine Enterprise Advisory & Compliance Brief. A technical analysis of IRC §183 compliance — including the nine-factor profit-motive test, relevant case law, and entity structuring considerations — along with a summary discussion of the private non-bank underwriting available to qualified equine entrepreneurs.
The Net Worth Neutral Framework
Elite equine ownership does not have to be a structural financial drain. We apply a strict corporate investment philosophy to your stable, transforming a traditional lifestyle expense into a structured, compliant asset.
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Capital Preservation: We structure your operations to eliminate negative impacts on your overall net worth.
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Risk Mitigation: We proactively design your entity to satisfy strict IRS guidelines, neutralizing compliance risks before they arise.
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Revenue Generation: We align your passion with commercial viability, positioning the entity to become self-sustaining and cash-flow positive.
We start by mitigating most if not all the economic uncertainties and financial risks of the horse business & traditional horse ownership. Including IRS audit risk.
Then we make it cash flow positive and profitable.
Amazing how much more enjoyable horses are when the economics are solved.
More importantly, there is always the substantial human element of horse ownership: the individual objectives of the owner, the skill of the rider, and the resources available.
But generally speaking, solving your equine economics should provide more horses, which should be of higher athletic quality, and with more and better training, resulting in not just a more rewarding equine experience but also a much safer environment. Better-minded, better-trained, and better cared for horses should also be safer horses.
That's all the more important considering the number of children that ride and compete.
Horses that are safer to ride and safer from an investment/ownership perspective.
Introducing: The Stable Investment Model
Traditional banks refuse to finance horse acquisitions, forcing horse owners to deploy massive upfront capital just to get started. The Stable Investment Model eliminates this barrier through an exclusive private financing structure available solely to our clients.
For selected equine acquisitions, private financing with 10% down may be available.
How the Financed Asset Works:
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Capital Leverage: Secure a top-tier horse or breeding prospect for $100,000 or a string for $1,000,000, without limits to any discipline, breed, or breeder, with an initial capitalization of as little as 10% down and flexible low rates.
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Barn Stabilization: As a strict risk-mitigation condition, financed horses may be contractually locked into a specific trainer's professional program—and can't be transferred to another trainer without mutual consent- helping trainers keep their barns full while securing the assets' long-term care and market value.
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Asset Quality & Care Assurance: To safeguard the value of the horse and ensure elite professional development, all financed assets are contractually anchored to their approved training program.
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Program Stability: The private financing note explicitly requires that the horse remain under the care of the designated trainer. Any relocation of the asset requires prior written approval from YES, protecting the owner’s investment standard and guaranteeing the trainer’s long-term barn stability.
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Closed-Loop Qualification: Because equine assets carry unique risk profiles, this private 90% financing is not open to the general public. To qualify for financing approval, the borrower must become an active client of YES Yacht Executive Solutions.
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Jurisdictional Optimization: Our private underwriting framework is specifically tailored to navigate the shifting landscapes of state-to-state wealth migration. Whether you are operating in traditional equestrian hubs or structuring assets within tax-advantaged state jurisdictions, our model ensures maximum capital efficiency for the owner while seamlessly integrating with local trainer ecosystems nationwide.
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Applies the "Auto Industry Model" to the Equine Industry: In the automotive world, dealerships rarely make their primary profits from selling cars. Instead, they leverage financing to unlock alternative, recurring revenue streams that often dwarf the vehicle's own profits. Our program brings this exact high-yield model to the equine industry. By offering structured financing options to your buyers, you transform a one-time horse sale into a powerful engine for consistent, passive income. This is your opportunity to stop relying solely on unpredictable lump-sum sales and build reliable, long-term wealth from the "horsepower" you create.
Whether an experienced equine entrepreneur, a horse hobbyist looking to perhaps do more, or a recent economic exile from high-tax states relocating to Texas or Florida just considering horse ownership, bringing your equine endeavors under the YES umbrella and our proprietary Equine Enterprise Model can solve the underlying economics, including the private underwriting, and seamlessly protect the horse owners' overall long-term net worth.
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Financing depends not on any horse or horses, but on the buyer and the YES strategies. We apply our Net Worth Neutral Yacht Ownership strategies to Net Worth Neutral Horse Ownership.
With our NET WORTH NEUTRAL smart money strategies, horse ownership will never be the same. We can totally change the dynamics and any conversation about the equestrian lifestyle.
The same strategies that make the yachting lifestyle profitable, cash flow positive, prudent wealth management can do the same for you and your equestrian lifestyle.
If our clients / partners don't make a profit, neither do we.
We take more of an investment banking philosophy when working with our clients, strategic partners, horse owners, equine entrepreneurs and industry professionals. Not only do we help structure and facilitate transactions that can get to that immediate YES and closed – but we maintain long term mutually beneficial and profitable relationships.
Our ability to provide proprietary programs and customized, comprehensive and coordinated solutions for the unique economic and financial objectives of each individual client – enables us to offer substantial long-term value to clients - long after the enthusiasm and excitement of the initial transaction has waned.
From our perspective, under the Renowned Rides program, there is no difference between a $100,000 car or a $100,000 colt.
Our objective is to ensure that our clients can afford to enjoy their passions over the long term- whether that be the yachting lifestyle, the equestrian lifestyle- or both.
Likewise it is not good for industry professionals if their clients are constantly leaving the industry because of economic issues.
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YES Is Your Equine Solution
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What could you accomplish if your equine economic issues were solved?
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What if your horse business produced predictable profits and positive cash flows?
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What if owning horses & the equestrian lifestyle had no negative, adverse affect on your net worth?
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For those equine enthusiasts that may be new to YES Yacht Executive Solutions, we invite you to review our web site and simply substitute horse for yacht when viewing the pages.
For from our perspective, and as explained herein, there is little economic or strategic difference between boats and horses, and the owners of such tend to share many of the same characteristics.
YES Is Your Experts' Solution & Your Advisers' Best Friend
The Advisor Alliance: Collaborating With Your Established Advisers
We Know You Value Your Current Team. So Do We.
Many clients rely heavily on a trusted inner circle of financial and legal professionals. We do not replace your team; we supplement them & hand them the missing structural blueprint they need to protect you confidently.
Traditional CPAs, tax attorneys, and wealth managers are exceptional at what they are trained and licensed to do—tracking numbers, building defensive legal wrappers, and managing traditional portfolios. However, they are not operational experts trained to engineer a profitable equine business model from scratch.
Creating a profitable enterprise requires more than just retaining a CPA, attorney, and financial adviser, as it falls outside their specialized scope of expertise:
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74% of horse owners and investors have investment advisors and/or wealth managers.
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65% to 75% of commercial equine operations with over $5,000 in gross receipts hire a CPA, specifically to comply with Internal Revenue Code Sec. 183 and accurately depreciate equine assets.
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40% to 50% of horse businesses regularly engage an attorney, but this percentage skews higher (up to 85%) for commercial breeding operations, high-end sales syndicates, and competition facilities.
When it comes to the equine industry, this high number of professional advisers is significant when considering only about 5% to 15% of all horse businesses are truly net profitable after tax- which is the IRS measure. While roughly 30% to 50% can achieve operational profitability (making more money than their day-to-day bills), the vast majority fail to clear the final bar of net profitability after-tax because tax codes heavily penalize how horse businesses operate.
The industry reality breaks down across several distinct categories:
1. The IRS "Hobby Loss" Trap (The 2-in-7 Rule)
The IRS tightly monitors equine operations because so many owners try to use horse expenses to write off other income.
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To be taxed as a legitimate business rather than a "hobby," an equine operation must turn a net profit in at least 2 out of 7 consecutive tax years.
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National tax court data reveals that fewer than 20% of audited horse farms successfully prove they operate with an actual, systemic profit motive.
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If classified as a hobby, you must pay taxes on 100% of your horse revenues, but you are legally blocked from deducting any horse-related expenses or losses.
2. After-Tax Net Profitability by Sector
When calculating true bottom-line success after income taxes, self-employment taxes, and asset depreciation, the sectors perform differently:
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Commercial Boarding and Training (10% to 15% are net profitable): This is the most viable sector. However, because horse facilities are heavily asset-dependent, property taxes, care-and-custody insurance, and equipment depreciation eat heavily into what is left after taxes.
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Thoroughbred & Sport Horse Breeding (5% to 8% are net profitable): Only a tiny fraction of breeders consistently clear a positive return after tax. Even at high-end yearling auctions, only about a third of the horses sold fetch a price that covers their production costs before the tax bill is even calculated. [1]
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Racing Syndicates and Ownership (Less than 5% are net profitable): Broad economic studies show that over 94% of active racehorses finish their careers unprofitable. For the vast majority of owners, expenses outpace purse earnings by a staggering 240%.
Good advisers will want you to succeed and consistently make a substantial net after-tax profit almost as much as you do - and perhaps maybe more if you have other sources of income.
While some horse owners may have other sources of income so that they are not dependent on the profitability of their horse business, it's worth noting that the IRS reports only about 20% of audited horse farms can demonstrate an actual, systemic profit motive.
Whatever the reason in any individual case — inadequate documentation, an operation that was never properly structured, or something more serious — the exposure is real, and it doesn't fall on the owner alone. CPAs and attorneys who sign off on these operations year after year carry their own risk under IRC §6694 and the standards of Circular 230.
"This isn't a secret.
The IRS's own oversight body has found that a large share of Schedule C activities examined show clear signs of not being run for profit — a 2016 Treasury Inspector General for Tax Administration audit found that 88 out of 100 sampled returns showed indications the business wasn't actually engaged in for profit.¹ And when §183 cases are actually litigated, the numbers tell the same story: the IRS wins or substantially prevails roughly 75-80% of the time, with taxpayers rarely emerging as the clear winner.²
Everyone in this picture already knows the pattern — the IRS, the CPAs who sign these returns, and the taxpayers who file them. The exposure isn't a surprise to anyone. What's usually missing isn't awareness of the risk; it's the structural, documented business framework that would actually hold up if examined. That's the gap YES is built to close — for the client, and for everyone whose name is on the return."
Whatever the cause, the fix is the same: a properly structured, well-documented operation that can actually demonstrate not just a profit motive- but an actual net after-tax profit. That protects the client, and it protects everyone who signs their return.
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When you bring YES into your network, your professionals gain an elite corporate ally:
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For Your CPA: We do not file your taxes or handle your accounting. We provide a fully structured, commercial framework designed to satisfy the strict 2-out-of-7 statutory profit presumption under IRC §183(d), handing your CPA a compliant business narrative to defend your enterprise deductions.
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For Your Attorney: We do not draft standard personal liability waivers. We provide specialized Stable Investment Model corporate financing agreements that contractually anchor assets to elite training programs, protecting underlying equity and stabilizing barn revenue.
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For Your Wealth Manager: We eliminate the heavy cash drain from your primary portfolio. By deploying our private non-bank underwriting and 10% down structure, we preserve your liquid capital so your wealth manager can keep your core assets compounding.
We are here to collaborate and coordinate with and align seamlessly with the professionals who guard your wealth, delivering the specialized corporate architecture required to turn your passion into a legitimate, cash-flow-positive business asset- whether its, horses, yachts, jets or something else.
Whatever the cause, the fix is the same: a properly structured, well-documented operation that can actually demonstrate not just a profit motive- but an actual net after-tax profit. That protects the client, and it protects everyone who signs their return.
¹ Treasury Inspector General for Tax Administration, Report 2016-30-031, "Opportunities Exist to Identify and Examine Individual Taxpayers Who Deduct Potential Hobby Losses to Offset Other Income" (2016).
² Analysis of 265 litigated IRC §183 decisions (Tax Court, district court, appellate, and Court of Claims), reported by Peter J. Reilly, "Tax Advisers Are Too Afraid Of The Hobby Loss Rules," Forbes (May 29, 2019).
In Fact, Horses Can Be Easier Than Boats
The 2-out-of-7 Leverage: Why Your CPA Is Missing the Mark
Most traditional CPAs treat horse operations under the standard IRC §183 Hobby Loss guidelines, which dictate that an activity must show a net profit in 3 out of 5 consecutive years to avoid being classified as a passive hobby.
This is a critical oversight, a difference maker.
Because of the unique economic cycles, development timelines, and high risks associated with the equine industry, the Internal Revenue Code grants a powerful statutory exception specifically for horses:
The Statutory Rule: For activities consisting majorly of the breeding, training, showing, or racing of horses, the IRS profit presumption relaxes to 2 out of 7 consecutive years (IRC §183(d)).
How YES Exploits This Window
This 7-year horizon is an incredibly powerful corporate planning tool if managed with sophisticated financial architecture.
It gives equine entrepreneurs a massive runway to absorb start-up costs, invest in elite bloodlines, and scale an operation safely.
However, you cannot simply claim losses for five years and hope for the best. The IRS demands a "common-sense business approach" from day one.
YES applies a strict investment banking philosophy to your stable. We build the exact operational frameworks, asset-sharing syndicates, and profit-generating structures required to satisfy the 2-out-of-7 window. We ensure your equine endeavors are recognized as a legitimate commercial enterprise, protecting your write-offs and rendering your entire lifestyle Net Worth Neutral.
Almost Like Equine Arbitrage & Protective Puts
The reason arbitrage is the right term here, not just an impressive one: arbitrage means a structurally locked-in gain, not a directional bet that might pay off. That's the actual goal of how YES structures an equine operation — not attempting to prove a profit motive after the fact and hoping it holds up under review, but structuring the operation so the profit is locked in from the outset, the same way an arbitrage position is.
While many of you will probably be familiar with the terms, some may not. However, even when people use the same word, they may not always mean the same thing.
Arbitrage is the practice of capitalizing on price discrepancies for the same or similar asset in different markets. By simultaneously buying an asset at a lower price in one market and selling it at a higher price in another, a trader—known as an arbitrageur—secures a virtually risk-free profit.
How Arbitrage Works
Arbitrage functions by exploiting temporary market inefficiencies, such as differences in supply and demand, transaction costs, or regulatory constraints between varying locations or exchanges.
For example, if Company X's stock is trading for $20 on the New York Stock Exchange and concurrently for $20.05 on the London Stock Exchange, an investor could buy shares in New York and instantly sell them in London to lock in a $0.05 per-share profit.
There are several types of Arbitrage
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Beyond the simple buying and selling of assets across different physical markets (spatial arbitrage), several specialized strategies exist:
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Triangular Arbitrage: A strategy used in forex markets that involves exploiting price discrepancies among three different currencies.
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Merger Arbitrage: A hedge fund strategy where an investor buys the stock of a takeover target company, attempting to profit from the difference between the current trading price and the final acquisition price.
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Statistical Arbitrage: The use of mathematical and statistical models (often via high-frequency trading algorithms) to identify mispricing among multiple securities.
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Tax/Regulatory Arbitrage: Taking advantage of differing legal, tax, or regulatory structures between countries or asset classes.
Then there are put options. While technically something different, they can be used to accomplish an arbitrage.
Generally, this specific put combination is a risk-management strategy known as a protective put or married put. It acts like an insurance policy for your portfolio rather than a mechanism to capture instant, risk-free profits.
Why It Is Not Arbitrage
To understand why this strategy is not a true arbitrage, consider these three financial realities:
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Upfront Cost (Premium): You must pay a premium to buy the put option. This upfront cost creates an immediate net debit in your account.
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Directional Bet: You still want the asset price to rise. If the price goes up, you make money on the asset, but your put option expires worthless, representing a loss of the premium paid.
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No Guaranteed Profit: Arbitrage requires locking in a locked, risk-free profit at the exact moment of execution. A protective put only locks in a floor price to limit your maximum potential loss.
When Options Are Used for Arbitrage
While simply buying a put with stock is not arbitrage, options are frequently used in true arbitrage strategies.
1. Put-Call Parity Arbitrage
This strategy exploits pricing inefficiencies between a stock, its put option, and its call option. If the mathematical relationship between these three instruments breaks down, traders execute a conversion or reverse conversion to lock in risk-free returns.
2. Conversion Arbitrage
If options are mispriced, an arbitrageur will:
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Buy the underlying stock
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Buy a put option
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Sell a call option (with the same strike price and expiration date)
This specific three-part combination creates a synthetic position that perfectly offsets all market risk, locking in a guaranteed profit if the entry prices are misaligned with interest rates.
New Challenges Are New Opportunities
Consistently earning a net after-tax profit could become even more difficult in the future. There is a growing political commitment to climate justice and making sure the most affluent and successful pay their fair tax share.
Not only do many U S political leaders promise to eliminate most of the tax incentives available to - many say abused - by some horse owners, but also plan greater tax compliance enforcement action with more IRS audits of selected groups.
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Those selected for greater tax audits surely include many horse owners and business owners.
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While the current political climate is relatively pro- business and economically accommodating, the future is anything but certain with the increasing interest in socialism.
Regardless, horse ownership in general, but especially every horse business, is likely to become more challenging and prohibitively expensive with higher fuel costs, substantial new taxes, higher tax rates, increased regulation, and IRS tax compliance audits - and often with the priority of reducing CO2 emissions.
YES could be your answer.
The Equine Enterprise Model: Turns Your Network into Ongoing Royalty Capital
Whether you are an established breeder or trainer scaling your operations, or a new client launching a strategic horse business with us from day one—your presence in the industry holds massive financial leverage.
When you introduce other high-net-worth individuals to the YES specialized financing and corporate wealth-protection framework, you don't just facilitate a transaction. You introduce them to a lifetime of advanced IRS tax mitigation and asset stabilization.
YES rewards our enterprise partners by integrating you directly into our wealth-management network.
As a premier referral source, you earn a continuous, long-term royalty stream on the comprehensive business we conduct with that client.
Unlike traditional, capped asset sales, our program converts your network into a powerful engine for predictable, ongoing "mailbox money"—maximizing your revenue long after the horse trailers leave the farm.
Texas & Florida Are Great Opportunities
Currently, there is an increasing number of high-income individuals and business owners living in high-tax states - such as New York- that are contemplating relocation to other, more tax-friendly states.
Texas and Florida often head the list of preferred destinations.
Aside from no personal state income tax, Texas and Florida rank:
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1 & 3 in horse ownership,
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1 & 2 in private jet ownership, &
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1 & 2 in boating and yachting revenue.
For those contemplating relocating to Florida or Texas, YES is uniquely positioned and ready to help.
The Florida Advantage: Safeguarding Luxury Operations
Florida’s tax-friendly environment makes it a premier destination for corporate capital.
However, moving high-performance horses into the state's elite competitive circuits exposes you to massive luxury overhead, transit costs, and six-figure import sales taxes.
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The Exposure: Purchasing a multi-million dollar equestrian estate offers massive agricultural property tax exemptions—but only if you can prove a legitimate, active commercial intent. If local tax appraisers or the IRS smell a "hobby," those exemptions are stripped, resulting in massive retroactive tax penalties.
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The YES Solution: We structure your equine operation into a compliant, profit-focused entity before you finalize your Florida land purchase. We turn your massive training, transport, and competition expenses into proactive, legitimate tax write-offs while locking in bulletproof local agricultural land status.
The Texas Advantage: Maximizing the TEEA & Ranch Exemptions
Aside from increasingly becoming the financial industry's primary alternative of choice to Wall Street, and with special expertise in the tax and investment incentives of the energy markets, Texas boasts some of the most aggressive Agricultural (Ag) and Land Conservation property tax exemptions in the country, alongside the protections of the proposed Texas TEEA (Tax Entrepreneur Equity Act).
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The Exposure: Simply placing a few performance or sport horses on a large ranch footprint does not legally qualify as an agricultural business. Wealthy transplants routinely trigger local property tax rollbacks and federal audits by failing to treat their acreage with an investment banking discipline.
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The YES Solution: YES serves as your onboarding partner for your Texas relocation. We structure your ranch and equine operations to satisfy strict state Ag requirements and state margin tax protections, letting you enjoy the prestigious lifestyle while completely neutralizing the financial drag.
The Equestrian Enterprise Portal: Onboarding & Compliance Architecture
Are you an established professional trainer or breeder looking to stabilize your barn revenue? Or are you an affluent individual considering acquiring your first elite bloodline or competitive string?
Traditional generalist advisors consistently mischaracterize equine assets as an unprofitable lifestyle expense.
In all candor, regardless of how good your current advisors are in their specific disciplines, if they knew how to make your equine endeavors profitable, they would have already told you by now - wouldn't they? Don't let conventional, risk-averse advice stall your sales pipelines or compromise your startup capital.
By emphasizing the unique, "missing" corporate blueprint that YES offers for making equine endeavors profitable, this final section reinforces the "Professional Alliance" framework discussed earlier. It directly bridges the gap between conventional advice and specialized, cash-flow-positive strategies. Download our comprehensive structural brief
Download our comprehensive structural brief to review the technical corporate architecture with your team today.
That if your current advisors knew, surely they'd have told you already- wouldn't they?