Discussion:Tank of Exotic Fish
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Tank of Exotic Fish
| 13 April 2007 | |
| I have a client trying to deduct a exotic gold fish, maintenance to care for it, feeding it, and monthly visit from a vet.
Client operates a asian restaurant and claims that his business is blooming because of that fish that attracts customers and brings him good luck. The expenses are significant compared to income. I have seen the deductibility of guard dogs on car lots but fish? I don't think they have a business purpose. Client will be back tommorow so hopefully I can give him some more insight. According to his friends in the industry, they deduct it. | |
| 13 April 2007 | |
| If the fish are in the restaurant it is no different than decoration or musical entertainment provided for the customer's benefit while eating. Deduct it. If he takes the fish home with him every night, they are pets. I have the requisite red and black fish in a tank in my office, very fung sushi. | |
Corptaxhelp (talk|edits) said: | April 13, 2007 |
| If I pack my office with a lot of expensive art, is it deductible?
Sometimes I have to remind myself that just because something seems like a poor use of business funds, it can still be a valid business expense. | |
| 13 April 2007 | |
| Thanks guy. If my $3000 fish die, I'd cry =D. $12,000 maintenance fees for the fish :P | |
| 13 April 2007 | |
| If the fish dies, his business will fail. The vet bill is like insurance to him. | |
| April 13, 2007 | |
| What is the class life for exotic fish? Are they a listed property? Do luxury limits apply? | |
Bottom Line (talk|edits) said: | 13 April 2007 |
| What's the life expectancy of this fish? | |
Corptaxhelp (talk|edits) said: | April 13, 2007 |
| If the fish get to be too expensive, are there any tax implications with taking them out of the marketing/insurance budget and putting them on the menu?
I'm sure the fish would considered it involuntary conversion. | |
| 13 April 2007 | |
| If i remember our convo correctly, the fish is expected to live for years. Although 90% of the fish will die as they are very sensitive to their environment. The fish is not on the books :P | |
Michaelstar (talk|edits) said: | 13 April 2007 |
| Well there is at least one out with the life claimed for depreciation - should it die before the expected life ends - the t/p gets a full deduction for any remaining basis. There could be a situation where the t/p might have to claim depreciation recapture but I will leave that scenario up to your imagination. | |
| 13 April 2007 | |
| the fish should rightfully not be on the books, but in his tank where he belongs | |
Bottom Line (talk|edits) said: | 13 April 2007 |
| flop, flop, gasp, gasp | |
| 13 April 2007 | |
| How much money does he want to spend on litigation? I would guess he could win this case if he had the money. This is a widespread, almost religious belief, in the Asian community. Moving water brings business, the gold fish bring gold I guess. Judging by the fact that these places are usually packed, I might lay on some fish this year. If the tax man shows up, throw in a few lobster, and ask him to take his pick. | |
| 13 April 2007 | |
| P.S. I do think it's deductible, if nothing else, it's a form of decoration. | |
Michaelstar (talk|edits) said: | 13 April 2007 |
| There is no question in my mind - this is a deductible business expense. How many restaurants of this kind does everybody go to that does not have some kind of fish tank. Not many......... | |
| 13 April 2007 | |
| I agree, it's deductible...don't forget the pediatrician's offices | |
Bottom Line (talk|edits) said: | 13 April 2007 |
| They say that watching fish has a calming effect. | |
| 13 April 2007 | |
| I have a 92 gal in the waiting room, and a 35 gal in my office for that very reason. Very good for stress relief. | |
Bottom Line (talk|edits) said: | 13 April 2007 |
| Before I met him, my husband had 70 40 gallon tanks. Heavy into freshwater fish breeding. He said that raising fish was easy; maintaining the water quality was the hard part. | |
| 13 April 2007 | |
| I made the mistake of getting a tropical aquarium on a lark once; studied my instruction book religiously. Within 3 months, I had a swamp. I still fell guilty for what I put those fish thru. | |
| 13 April 2007 | |
| I stopped having fish myself. they die every tax season due to my neglect. T_T | |
| 13 April 2007 | |
| Yup, just like artwork/decorations in any other business, provided the maintenance costs are reasonable. Unfortunately, that type of fish probably doesn't taste very good. | |
| 13 April 2007 | |
| My blind client walked by my tank one day and said "Hello ladies"
Sorry, that was pretty bad. | |
| 13 April 2007 | |
| Women have been banned from the local lake down here.
Couldn't get the smell out of the fish. OK that's enough. Have a good weekend all. | |
Bottom Line (talk|edits) said: | 13 April 2007 |
| Bad boys | |
