Case Study: Tax Deductible Dog Saves $564 Tax
19 July 2018
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.
Posted in Case Studies, Tax Planning
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
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