Dog Related Tax Deductions

Dog Related Tax Deductions

Have you ever wondered if dogs were tax deductible? As much as we all believe that our pets are members of our family, the IRS sees things differently – so, you will not be able to claim your pet as a dependent; however, there are certain exceptions to the rule.

You can deduct the cost of shipping your car and your household pets (including dogs, cats, birds, fish, etc.) to your new home. There is a catch though:
Your move is closely related to the start of work.
You meet the distance test.
You meet the time test.
For more information – Review Publication 521

If you own a guard dog (size and breed do matter here) to protect your business – keep your records and all work-related expenses. This would include dog food, any special training or veterinary bills.

If you open your home (or heart) to foster animals in need: Foster animals from a qualified nonprofit are deductible on Schedule A as a charitable donation. Keep in mind that expenses should go toward caring for these animals, such as buying them food, pet supplies and put towards any vet visits.

Service animals are considered to be part of your medical expenses, so they are also tax deductible if you itemize.

Claiming tax benefits could require some creativity, convincing the IRS that you have reason to deduct pet-related expenses and good old research. The information is out there, it just takes due diligence. To make things even easier, working with a knowledgeable consultant or accountant can take all the guess work out of the equation. If you have any pet-related expense questions – contact us – we can help!