Pets can provide business tax advantages. It’s true! Your business may be able to deduct the cost of “employing” cats and dogs, so long as the animals serve a bona fide business purpose. Working animals that generally qualify include guard dogs and cats that protect facilities from rodents. If these workers are also part-time pets, you can deduct only the percentage of expenses associated with the animals’ working schedules. Expenses for food, veterinary care, training, and supplies such as leashes and beds are usually deductible. But the costs must be “reasonable,” and it’s critical to keep good records. Different tax rules apply to farmers, ranchers and professional breeders.
