Who is self-employed in Kentucky
- The horse industry. Trainers paid per day and per win, farriers and equine vets on their own books, bloodstock agents on commission, and small breeders whose income lands at the sales in September and November. Almost none of it is W-2.
- Bourbon's supply chain. Cooperages, barrel brokers, contractors building rickhouses and visitor centers, and the tour and hospitality businesses along the trail.
- Louisville logistics. Owner-operators and small carriers serving UPS Worldport and the distribution parks around it, paid by settlement.
- Farms and trades across the state, from tobacco and cattle to the contractors who rebuilt eastern Kentucky after the 2022 floods.
What is specific to a Kentucky file
- Dower and curtesy. Kentucky still recognizes a spouse's dower or curtesy interest in real property. A non-owner spouse signs the security instrument to release that interest. It does not make them a borrower or add them to the income review.
- No mortgage recording tax. Kentucky's transfer tax applies to deeds, not mortgages. Recording a home equity line involves county clerk fees only.
- Farm property. A rural residence on some acreage is straightforward. A home that is part of a working horse or cattle farm is reviewed differently, so say which it is.
- Flood zones in the east. On property in the counties hit in 2022, flood coverage is confirmed and any unrepaired damage or open claim is resolved before closing.
- Valuation. Louisville, Lexington and Northern Kentucky have deep automated-valuation data; rural counties are thinner, so an appraiser is more likely there even on a smaller line.
A trainer's tax return versus a trainer's account
Day rates arrive monthly from a dozen owners; purse percentages arrive when a horse wins; sales commissions land twice a year. Against that, the return carries truck and trailer depreciation, feed and vet costs and every expense of a business that runs on thin margins, and it shows a modest net. A bank lends on the net. This program reads the 12 months of deposits from the owners, the tracks and the sales companies, and sizes the line from those.
Common questions
The house is titled to me alone. Why does my spouse sign?
Kentucky recognizes dower and curtesy — a spouse's interest in real property. Your spouse signs to release it. It does not make them a borrower.
I'm a farrier paid by dozens of clients. How is that income read?
As 12 months of deposits into your account, however many clients they come from. No employer verification, no return.
Is there a Kentucky tax when the line is recorded?
No. The transfer tax applies to deeds. A home equity line involves county clerk recording fees only.
We had flood damage in 2022 and rebuilt. Can we qualify?
Yes, once repairs are complete and coverage is in force. An open claim or unfinished repair is resolved first.