Is Pet Expenses Tax Deductible for Your Business?

Whether pet expenses is tax deductible depends on how you use it and your specific business situation. The IRS evaluates deductibility based on whether the expense is ordinary and necessary for your particular trade or business.

Key Rules for Deducting Pet Expenses

Office pets and emotional support animals are NOT deductible. Guard dogs used to protect inventory/premises MAY be deductible (must be appropriate breed, actually used for guarding). Service animals may be medical deductions on Schedule A.

Requirements to Claim This Deduction

• Office pets/ESAs: NOT deductible
• Guard dogs (protecting business): MAY be deductible
• Service animals: medical deduction on Schedule A

How to Document Pet Expenses for Tax Purposes

Proper documentation is critical for any business deduction. For pet expenses, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 535; Tax Court Cases. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.