Daycare Tax Tips

A Tom Copeland Daycare Tax Tip

Pet Expenses Not Normally Deductible

December 2006

Here's a tax tip from Tom Copeland:

Can you deduct expenses for your dog or cat? The short answer is "no." The IRS views dogs and cats as too personal to be deducted as a business expense. In over 20 years of representing providers in IRS audits, I have never won a deduction for the upkeep of either a dog or cat.

You can deduct the cost of keeping a dog away from the children (fence or leash). In addition, you can deduct the cost of immunization of these pets, but only if your local community does not already require such immunizations for all pet owners.

You could also deduct the cost of some pets (fish, gerbils, birds, etc.) if you can show that these animals are used as part of the education program with the children in your care. Keep records showing how children are learning because of their interaction with these animals.

Last updated: 22 May 2011

Posted on 0000-00-00 00:00:00