Can you put a dog through the business?
The most obvious situation where the purchase and ongoing care costs of a dog are allowable is the traditional working dog such as a farm dog, or guard dog. … If the purpose of acquiring the dog was to perform a valuable role in the business, it follows that all associated doggy-costs should be allowable as deductions.
You can start a dog kennel business with a relatively modest amount of capital. You would need to build or acquire a suitable facility for providing shelter for the dogs entrusted to your care, a covered storage area to keep tools and feed, provide for adequate water drainage, and have an office area suitable for administering your business. All these costs are capital expenses, depreciable over time. If you are also in the business of breeding dogs, the cost of the dogs you keep for breeding purposes are also depreciable capital expenses.
Leslie McClintock has been writing professionally since 2001. She has been published in “Wealth and Retirement Planner,” “Senior Market Advisor,” “The Annuity Selling Guide,” and many other outlets. A licensed life and health insurance agent, McClintock holds a B.A. from the University of Southern California.
How long do you depreciate a dog?
Remember, dogs are depreciated over seven years. If you write off the entire cost of the dog the first year of breeding, but then you quit breeding your dog—you’re required to “recapture” any remaining depreciation.
Is it considered an asset? … A dog used for breeding can be considered a business asset if you are in the dog breeding business. They’re depreciated over seven years, beginning when the dog reaches maturity for its intended use—so at sexual maturity for breeding purposes.
All these costs are capital expenses, depreciable over time. If you are also in the business of breeding dogs, the cost of the dogs you keep for breeding purposes are also depreciable capital expenses.