Tax Write-Offs for Dog Breeders

by Luke Arthur ; Updated July 27, 2017

If you enjoy working with man's best friend, you may turn this love of dogs into a business opportunity. Dog breeders get to work with dogs every day, and many of the expenses that they incur can be deducted from taxable income. If you work in this capacity, you'll want to get all of the deductions that you are entitled to.

Hobby Loss Rules

Dog breeding businesses have to prove that they have the motive of creating a profit. If you cannot prove this, the Internal Revenue Service can actually disallow the deductions that you claim against income. If you simply do the dog breeding business as a hobby and then try to claim losses on your tax return, the IRS will not look favorably upon this. When dealing with dog breeding businesses, you typically have to post a profit in two out of seven years to show that you are in business for profit.

Equipment and Supplies

Working as a dog breeder requires you to invest money in equipment and supplies. For example, you may have to spend money on cages, leashes, collars, dog food, toys and other items that the dogs need. When you spend money for these purposes, the Internal Revenue Service will allow you to deduct them from your taxable income as long as you can prove that your dog breeding venture is a for-profit project.

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Vet Bills

When you run a dog breeding business, one of your largest expenses may be the veterinary bill. For example, you will have to pay to get each dog its shots. You will inevitably need to pay the veterinarian when the dogs get sick or injured. You may also decide to have some of the dogs spayed or neutered, depending on your objectives. Any of these costs could be written off and deducted from your taxable income.

Miscellaneous Costs

Dog breeders often incur many miscellaneous expenses that qualify as deductions. For example, if you have to travel for your dog breeding business, the costs associated with this travel can be deducted. If you have to deliver a dog to another state, the cost of the gas, hotel accommodations and meals could be deducted while you are traveling. If you use a designated area inside your house for an office, the Internal Revenue Service also allows you to take a home office deduction, which lets you deduct a portion of your mortgage, utilities, insurance and taxes based on the size of your office.

About the Author

Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.

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