NT - My Question of the day

[tilt]

Client: How much can I deduct for a pet?

Me: Excuse me?

Client: Since I have a day care business, I got a pet and the kids play with it. Isn't that the same thing as getting toys and games?

[kcjenkins]

So what kind of a pet did she get? If it was a hamster, I'd deduct the darn thing without blinking. If it was a shelter dog that cost $36 for the fees, I'd deduct all of it, if it cost $150 for the adoption, at least half, but probably all. If it was a $600+ dog, I would not deduct it at all, since I'd have to assume that the reason for spending that much was not for the daycare kids.

[Virtual Managed Solutions]

I would also go with KC's logic. That's how a lot of people think and I'm sure client is no different. And yes, out of curiosity - what type of pet was it?

[tilt]

It was a dog. She told me that the dog "found" them when they were hiking and they just brought it home. From everything I've read, the IRS takes that position that a cat or dog is a family pet and not a deduction. Further reading takes the position that if she bought a hamster or other critter, she would have to keep records to show that she was showing kids how to care for it and document their learning experiences.

I can see a preschool doing something like that. When my sons were in preschool, kids brought a rabbit home on the weekends. But she does not intend to loan the dog out.

[TAXBILLY]

A pet for the business could involve other problems like liability, etc.

taxbilly

[BulldogTom]

Is the pet a monkey in a pink tu-tu with a wand and a tiara?

That one is for you Kerry!!!!!!

Tom

Lodi, CA

[Virtual Managed Solutions]

I don't mind loaning him out every once in a while! Just email me for details on where to pick him up! :rolleyes:

[Monkeyman]

Is the pet a monkey in a pink tu-tu with a wand and a tiara?

That one is for you Kerry!!!!!!

Tom

Lodi, CA

LOL

Thanks, Tom!

Kerry

[kcjenkins]

It was a dog. She told me that the dog "found" them when they were hiking and they just brought it home. From everything I've read, the IRS takes that position that a cat or dog is a family pet and not a deduction. Further reading takes the position that if she bought a hamster or other critter, she would have to keep records to show that she was showing kids how to care for it and document their learning experiences.

I can see a preschool doing something like that. When my sons were in preschool, kids brought a rabbit home on the weekends. But she does not intend to loan the dog out.

Well, if the dog 'found' them, she has no cost basis to deduct, does she? As for the on-going expenses, which I now assume is your real question, I'd say no to taking those, since it is staying at the family home, not in a separate business location, right? While the expenses of a 'working dog' can be taken, such as a guard dog that lives at the business premises to protect them, a dog that lives with the family and whose only 'work' is to play with the kids, I would not be able to justify.

[tilt]

Thanks KC. That's pretty much my take on it too. I work from home and tell the clients that I have 9 tax kitties. It makes them smile. Sure wish I could write them off - I spend a fortune on them.

[Janitor Bob]

Thanks KC. That's pretty much my take on it too. I work from home and tell the clients that I have 9 tax kitties. It makes them smile. Sure wish I could write them off - I spend a fortune on them.

Yes...Lila the giant dog (lab-doberman mix) loves to greet clients and scare away bad people....so I can use her vet and food expenses as a business expense right? After all, my auto mechanic said I could!

[Virtual Managed Solutions]

I'd only listen to the auto mechanic if he had heard it from his mother-in-law. Other than that, it's probably not true..