CAN YOU DEDUCT YOUR DOG?
You love your dog, but can you deduct them on your taxes? In most cases, the answer is no. The IRS doesn’t allow tax breaks just for having a pet, no matter how loyal or helpful they are. But in some specific situations, dog-related expenses may qualify as legitimate tax deductions. If your dog plays an active role in your business, assists with a medical condition, is part of a for-profit breeding or show operation, or if you foster dogs or donate them to a legally recognized nonprofit organization, you may be able to deduct some or even all of the related costs. Our Hanover, MD tax lawyers give a breakdown of what qualifies, what doesn’t, and what you’ll need to show the IRS.
Service Dogs For Medical Use
If your dog is specially trained to assist with a diagnosed medical condition, such as visual impairment, hearing loss, or other physical disabilities, you may be able to deduct the costs as a medical expense if you itemize deductions. In general, this includes any costs, such as food, grooming, and veterinary care, incurred in maintaining the health and vitality of the service animal so that it may perform its duties. To qualify, the service animal must be specifically trained and used to assist with a diagnosed condition, and your doctor must have recommended the animal for treatment.
Guard Dogs For Business Use
If you use a dog to guard your business premises, like a warehouse, retail store, or office, you may be eligible to deduct part of the dog’s expenses under the rules for ordinary and necessary business deductions. That means you must show the dog is part of your business operations, not just a pet. To strengthen your case, the dog should first be a breed commonly used for protection. Next, the dog should primarily stay on the business property (not at your house). Be sure to keep records of the dog’s role and expenses, like food, training, vet care, and more. Finally, four factors should be considered to support a deduction: the business purpose, the location of the business, the type of animal, and the animal’s training. In addition, the IRS may allow only a portion of the expenses, depending on how clearly the dog is used for business purposes. If the dog also lives at your home or serves multiple purposes, you can expect the deduction to be limited accordingly. While deducting expenses for a guard dog may seem straightforward, court rulings on this issue have been mixed. Some cases support the deduction, while others do not. To ensure your deduction is properly structured and defensible, it’s essential to consult with an experienced tax attorney. Our law firm in Maryland can help you navigate the legal and tax requirements with confidence.
Breeding And Showing Dogs For Profit
If you’re breeding dogs or showing them as a business, not just a hobby, you may be able to deduct related expenses. The key is showing you’re in it to make a profit, not just for fun or personal enjoyment. The IRS uses a nine-factor test to decide if your activity is a business. Things they look for include: whether you run the activity in a businesslike way, keep detailed records, have specialized knowledge or consult with professionals, spend significant time and effort, show a track record of success, generate income or improvements, expect the dogs or assets to gain value, rely on the income, and avoid treating the activity as just for fun or personal enjoyment. If you can prove that your goal is profit and not just prestige or personal satisfaction, your expenses may qualify.
Charitable Deduction For Dog-Related Expenses
If you foster dogs or donate a trained animal to a nonprofit organization recognized by law, certain expenses may be deductible. For fosters, you can deduct out-of-pocket costs, like food or medical care, so long as they’re not reimbursed and directly support the organization’s mission. If you donate a dog as non-cash property, you may be able to deduct the fair market value, but not the value of your time or training. You’ll need detailed records, receipts, and written acknowledgment from the charity. Donations valued over $500 require IRS Form 8283. These deductions are heavily scrutinized, so our tax attorneys in Maryland are here to help ensure your claims are properly documented and compliant.
Household Pets
Expenses for family pets are not deductible, even if your dog barks at strangers or “guards” your home. The IRS does not treat personal security or companionship as valid business purposes.
Need Help Documenting Or Planning A Deduction?
The IRS will disallow deductions for personal pets or if you don’t provide clear documentation. Improper deductions could lead to penalties. Keep thorough records and consult a tax professional at Crepeau Mourges to make sure you meet IRS requirements and avoid potential red flags. We’ll help you understand what qualifies and what doesn’t, so you can stay compliant and take advantage of every deduction you’re entitled to.
References:
Burleson v. C.I.R., 46 T.C.M. (CCH) 1394 (Tax 1983).
Cox v. C.I.R., 90 T.C.M. (CCH) 599 (Tax 2005).
Internal Revenue Service, Publication 502, Medical and Dental Expenses (2024), https://www.irs.gov/pub/irs-pdf/p502.pdf.
Internal Revenue Service, Publication 526, Charitable Contributions (2024), https://www.irs.gov/pub/irs-pdf/p526.pdf.
Internal Revenue Service, Publication 561, Determining the Value of Donated Property (2024), https://www.irs.gov/pub/irs-pdf/p561.pdf.
Internal Revenue Service, Instructions for Form 8283 (Dec. 2024), https://www.irs.gov/instructions/i8283.
Rodriguez v. C.I.R., 97 T.C.M. (CCH) 1090 (Tax 2009).
Van Dusen v. C.I.R., 136 T.C. 515 (Tax 2011).
26 U.S.C.A. § 162 (West 2025).
26 U.S.C.A. § 170 (West 2025).
26 U.S.C.A. § 213 (West 2025).
