Case Study: Tax Deductible Dog Saves $564 Tax
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.
- Incurs $900 buying the dog and $600 training fees.
- Incurs $1,200 per year for food and vet bills.
- 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.
- Tom saves $564 tax ($1,200 @ 47%).
- Tom doesn’t lose any more tools to theft.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2