tax deductible dogs

Objectives:

  
Robert is a plumber and has recently lost tools due to theft at the building sites he works on. Robert purchases a dog to take to work for companionship, and to also protect his tools. 

Facts:

  • Incurs $900 buying the dog and $600 training fees.
  • Incurs $1,200 per year for food and vet bills.

Accountant’s Advice: 

  • Tax Strategy 138: Tax Deductible Dogs – The purchase cost of the dog (and training fees) are not deductible as they are capital costs. In contrast, vet bills and pet food bills may qualify as a tax deduction.

Results:

  • Tom saves $564 tax ($1,200 @ 47%).
  • Tom doesn’t lose any more tools to theft.