Last Reviewed: Feb 2011
Last Modified: Feb 2011
Dog and cat breeders (the tax code has yet to recognize the superiority of Labradoodles over all other breeds) face a number of hazards at tax time, yet also have access to a number of tax benefits. Domesticated animals are not agricultural and therefore do not enjoy the tax benefits available to farmers, but they are entitled to the same deductions as other non-agricultural businesses. Breeding dogs can be depreciated along with kennels, whelping boxes, travel carriers, office equipment, etc. On the other hand, animal breeding can be subject to pitfalls not applicable to many other businesses. This document describes some of the tax impacts, both good and bad, that are particularly pertinent to the Labradoodle breeder (or lesser canines :).