Labradoodleductions
Labradoodleductions
Guardian Homes
Guardian Homes
Print Full ArticleLast Reviewed: Feb 2011
Last Modified: Feb 2011
Guardian home arrangements, wherein a dog is given to and cared for by a new owner in exchange for the breeder retaining the breeding rights, should be treated by the breeder as a sale of the dog at fair market value for equivalent pet-quality dogs. The breeder has essentially sold the guardians a pet and they are paying for it by providing for its maintenance and well-being, thereby preserving the value of the breeding rights. Assuming the guardians have no commercial interest in the dog, there should be no tax impact to them. The breeder reports the sale as either the sale of an asset or the sale of inventory, whichever is appropriate (see earlier discussion regarding assets vs. inventory).
