10 Pet Related Tax Write-Offs You Should Know About
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If your pet is an all-star on the show circuit, or you’re heavily involved with sports or other competition (as a trainer, judge, groomer, or presenter), then you’ll probably be able to write off all the costs associated with your pets (as long as those pets are critical to your business). That includes leashes (if you’re a dog-walker), grooming (if you’re on the show circuit), veterinary bills (across the board) and more. But, ALWAYS check with a CPA who understands and appreciates the importance of writing off expenses. This is not an area you want to play around in.
You all remember Rafalca (Ann Romney’s horse). According to Kiplinger,
“Rafalca had a brush with fame when she was ridden in the dressage competition at the London Olympics. But it was her appearance on the Romneys’ 2010 tax return that attracted the most attention. The Romneys reported a $77,731 loss from the entity that owned the horse—a “passive activity” in which they had a partial interest and which they didn’t materially participate in running.
Since the Romneys had other passive income that year, they got to deduct a portion of their Rafalca-related losses—all of $50 worth—though the rest could be carried forward indefinitely to offset future passive income or, if the money-losing horse business is sold, any income.”
