Your Pooch Could Have Tax Deductions

Dated: 08/23/2016

Views: 136

Johnson City HomesYeah, that caught my eye too. Tax time is a fearful time for some of us, and others, not so much. Whether you have anxiety or not, you are likely looking for all the deductions you can rightfully claim on your taxes. Today, we look at some scenarios where you could actually claim tax deductions for your dog. (Disclaimer: The Shields Team are not tax professionals, you should always consult with an accountant first for any deduction in question).

  • Moving-If you're moving in the near future and plan to ship your dog in a safe crate, there is a moving expense allowed for this. There are a few restrictions for the moving expense deduction, and can be found on tax form 3903. 

  • Working dogs-If you use a dog for the following purposes, there is likely a deduction out there:

    • Seeing eye dogs.

    • Medical alert dogs – must be trained to detect impending seizures,help  impaired hearing, etc. The key here is “special training” required. Medically necessary dogs are required to be licensed by their owner, require special documentation provided by a doctor and special dog tags, says Mullin. See your tax person for more information.

    • Security dogs – must be used as security for a place of business (cannot be a private residence or a hobby farm – true business farms qualify). Must also be a “protection” breed such as a Rottweiler, German Shepherd Dog or Doberman. You also have to keep accurate records of time spent on the job.

    • Dogs trained to find bed bugs.

  In all of these cases, the cost of buying, training and maintaining the dog is deductible.

  • Performance Dogs- Dogs used in hobbies such as show dogs or bird hunting may be deductible. If the dog wins prize money in the endeavor than the expenses incurred to train, show, etc., re deductible up to the winnings. To do this you must be able to file Schedule A.

  • Breeding business- If you breed dogs as a business the endeavor is deductible. Proper record keeping is very important to prove it isn’t a hobby.

  • Fostering or Adoption- Fostering or adopting a dog from a qualified charity may be deductible. If the adoption fee is a donation it is deductible. However, if it is payment for the dogs care it isn’t. It's important to read the invoice you receive when you adopt, it should say "donation". 

So, see? More helpful stuff! We love that. 

If you're in the market to buy or sell a home where your little tax deduction can live, please give us a call! Our office phone is(423) 433-6517, or, stop by our office for an in-person visit! We're inside Keller Williams Realty, 1033 Hamilton Place in Johnson City.


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Rayne Price

Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....

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