Ask an AI Accountant

A free tool by

Question
I run a junkyard, and my wife and i have a couple of dogs that help me keep an eye on things. They're german shepherds, they live in our house and I bring them to work with me. Can we write off what we spend on them, since they're guarding our business?
AI accountant’s answer:

While it is understandable that your dogs provide security for your junkyard business, unfortunately, the IRS generally does not allow deductions for pet expenses, even if they serve a business purpose such as guarding property. Pet expenses are considered personal in nature. However, if the dogs were specifically trained as guard dogs or for another specific business purpose and their primary function is related to your business, you may be able to deduct some of the expenses related to their upkeep and maintenance. This could include costs directly tied to their business purpose, like training, food, veterinary care, and any other necessary work-related expenses. Please note that if you decide to deduct these expenses, you should maintain detailed records to substantiate the business purpose of the dogs in case of an IRS audit. Additionally, it's always recommended to consult with a qualified tax professional to determine the eligibility of any deductions related to your specific situation.

Comment from reviewer
Isaiah McCoy, CPA
Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Estimate tax saving

Track and claim every eligible deduction with Keeper

Keeper is the top-rated all-in-one business expense tracker, tax filing service, and personal accountant.