Therapy Dog

[Tim KAN]

Hello, if I am a sole proprietor and I own my therapy business, if I buy a dog to use as a therapy dog can I deduct the cost of the dog? 

[MaryK4]

Yes, if you use a therapy dog as part of your business, you can deduct the cost of the dog and any expenses to maintain him.  It is an ordinary and necessary expense for your business.

[Tim KAN]

Thank you for your help.  How I do I classify the expense?  Office supply?  Other?  Equipment?  Does the answer change if the dog is my family pet when it is not at work?  

[MaryK4]

Because it can be used for more than one year, you would want to add as an asset and use a 7 year depreciation schedule.  Any supplies for upkeep can be entered as supplies.  The most important thing is that a trained therapy dog can be treated as a pet, but a pet cannot necessarily be a therapy dog- so your treatment while caring for the dog in the off hours can be incidental.  There is no reason to keep it in a kennel in its off hours just because it is a therapy dog.  Use caution when looking at the time the dog is being used; once again if it is ordinary and necessary to assist you in helping others and make money it can be a deductible business expense. @Tim KAN