No one loves paying taxes. It is only natural people start to get creative with ways they can decrease their tax liability. With the growing rate of furry friend owners, people can’t help but wonder: can my dog help me decrease my tax liability?
Many consider their dog as their child. So, if you can use your children to decrease your tax liability, can you use your dog too?
Surprisingly, we get this question a lot so let’s break it down…
The simple answer is “no, but…” This is because in certain cases, you actually can use your dog as a tax write off.
Here are some situations that will allow you to use your dog in your tax return:
1. Service or Emotional Support Animal (Therapy Dogs)
In certain cases, dogs may be used to help you with emotional or physical needs. Dogs may help guide a blind or deft person, help with seizures etc. We recommend having your medical reason documented and diagnosed. We also recommend speaking to a tax professional to ensure you qualify and meet all the IRS requirements.
2. Business Expense
If you have a business, let’s get creative. Does your dog perform any service that helps you and your business in daily operations?
Perhaps your dog might be acting as security and protecting your business front from potential predators. It may be comical, but depending on your business, it could be a valid claim that your dog is meeting security requirements needed to operate safely.
Maybe your dog serves as your company mascot greeting all your guests. Perhaps your dog is part of your company’s branding and used to lure in clients. Depending on the nature of your business, your dog might be an integral source to your company’s marketing efforts and client retention.
Your dog, or cat more likely, could be acting as pest control. Perhaps any critters you may have will be taken care of by your furry friend. What better way of pest control?
3. Fostering or Rescuing
You might be spending a lot of time with foster or rescue dogs. If this is the case, you could use your associated expenses in your tax return as charitable expenses. To do this, you must work with a valid 501(c)3 organization. We recommend properly documenting your expenses, and speaking to a tax professional to ensure you meet the requirements needed.
Using your dog as a tax write off is not very common, however you might be able to benefit from talking to an expert about how your situation might align with a legal and legitimate reason to benefit from your dog.
Want to speak to someone today? Contact us and we’ll get int touch shortly.