Tuesday, December 15, 2015

File Pets On Your Taxes

In recent years, animal rights activists have made many attempts to amend current tax law so that pets are considered dependents, and thus equivalent to children. Currently, in the eyes of the law, pets are property and not people. That being said, the only way to file pets and their expenses on a tax return is to legitimately establish the pet as a business asset. A business asset is a piece of property held by a business entity for the purpose of making money.


Instructions


1. Brainstorm a business in which the particular pets are a necessary expense. For example, business entities such as zoos, circuses, professional breeders, and professional animal showers are able to write off any and all costs for their animals as a business expense.


2. Legally create the desired business within the state of residence. The four traditional ways to file a business are corporation, partnership, limited liability partnership, and limited liability company.


3. Begin running the pet-related business and carefully log all expenses. Valid expenses may include food, grooming supplies, vet visits, and any other expenses that directly relate to that particular pet.


4. Pay anticipated taxes quarterly for that business, keeping careful calculations of actual profits. Profits are the overall amount earned minus all business-related expenses.


5. File the pet as a business asset on the final tax reporting documents.

Tags: business asset, limited liability, partnership limited, partnership limited liability