You want to come up with as many deduction as possible to boost your refund, but beware. Make a mistake, and you could wind up owing the IRS instead of earning extra dough. Many people ask me if their pets are deductible. Believe it or not, they are!
First Things First: He may be Man's Best Friend, but do NOT deduct Fido as a dependent. Your pets do not have social security numbers, they are not your kids. Don't even try it!
Business Pet Tax Deductions: The IRS skims business deductions carefully for signs of fishy deductions. Therefore, any pet-related business deductions must be handled tactfully. You'd better have plenty of evidence to prove why your animals are vital for the business!
Health Pet Tax Deductions: The states that "The costs of buying, training, and maintaining a service animal to assist an individual with mental disabilities may qualify as medical care." What's the catch? You have to prove the service animal is being used primarily for your illness. A legitimate note from your doctor should do the trick.
More Legitimate Pet Tax Deductions
- Guard Dog Tax Deduction: If you have Guard Dogs protecting your business the expenses for taking care of them could qualify for a Pet Tax Deduction. Your animal must be a certified and trained guard dog, and it helps if he implies the guard dog aesthetic. Think Pit Bulls, Rottweilers, and German Shepherds, not Poodles!
- Cat Food Tax Deduction: Owners of a junkyard successfully wrote off the cost of cat food they used to attract wild cats. How did they get away with it? The felines killed snakes and rats on the property and made it a safer place for customers.This deduction made it all the way to U.S. Tax Court, and won.
- Pet Traveling Expenses Tax Deduction: If you qualify for moving expenses deductions (usually for changing jobs), you can deduct all moving expenses- including the cost of moving your dog, cats, or other pets. No matter how exotic your animal is, it will be treated the same as moving your other possessions.
Deduct Your Pets, But Do it Right!
If your animal truly qualifies for a tax deduction, have at it! But remember to do it right. Consult with a professional first, you can send me your tax deduction questions if you'd like, but just get a second opinion before you pull the trigger. You don't want to owe the IRS because you went a little crazy with the Pet Tax Deductions!