Discussion:Breeding Expenses

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Discussion Forum Index --> Tax Questions --> Breeding Expenses

TaxManJoe (talk|edits) said:

15 April 2007
Hello All,

Just found your site. First time poster. Need help with a dog breeding client. I've read the other threads on breeding but they did not address my concern.

From a previous thread, I learned that if a dog is purchased with the intent to breed but the dog is not ready to breed, then depreciation would not begin until the dog is ready (placed in service). If a dog has not yet been placed in service, are expenses such as food and vet cost a deductible business expense?

Deback (talk|edits) said:

April 16, 2007
Yes, I would deduct food and vet costs.

DouglasC (talk|edits) said:

7 August 2008
im considering starting up a side bussiness, breeding english bull dogs.

what can i write off as start up costs? i was thinking i could write off the initial cost of the dogs, vet bills, food, bedding/crates....ect Opening a bussiness account, and keeping all reciepts pertaining to actual costs incurred with this bussiness should be considered a write off,,, right?


Kevinh5 (talk|edits) said:

7 August 2008
do a search "dog breeding" in the yellow box

that is what the site is for: search first, ask second (if you are a tax professional)

RoyDaleOne (talk|edits) said:

7 August 2008
I suggest you learn the hobby loss test used by the IRS, and plan to satisfy that test. Just a word of advice.

This suggestion applies to DYI and pros alike.

Solomon (talk|edits) said:

7 August 2008
Reg. 1.183-2.

CrowJD (talk|edits) said:

8 August 2008
Let me warn you about something. I got the itch to raise some English Setters. I went through some difficulty in locating two prime specimens, which I purchased, and immediately put into basic training. I worked with them for a few weeks, and man, I felt like I was teaching in the public schools! The dogs were rude and impudent; disrespected me, made funny noises, and intentionally "soiled" my book on dog training.

Well, as it turns out, these dogs were Chinese speakers. Imports! I would never have found out, but I was having some Chinese food delivered, and the dogs struck up a conversation with the delivery boy. If that's not bad enough, later that evening, my house got trashed, my entire set of tax materials was stolen, and I have not seen the dogs or the delivery boy since. I suspect they may have set up practice at an out of the way H&R Brock.

So, a word of warning, have your dog checked out, and make sure he's a native English speaker. Don't go by the name alone.

Natalie (talk|edits) said:

August 12, 2008
Crow, you're too much!

Death&Taxes (talk|edits) said:

12 August 2008
Crow: reading about our new Otter Hound/Old English Sheepdog, I find so many breeds were developed in Merry Old England. They track this one back to the 14th Century, when apparently otter hunting was an Olympic sport [Sir Berefoot Tipton won the gold at Constanz in 1420] so it would be surprising if the dog did not speak English.

Obviously your setters were sent to the Orient during the Opium Wars of the 19th Century and went native there.

CrowJD (talk|edits) said:

12 August 2008
We are just recirculating those dogs, huh? Well, I found out that my dogs have left tax preparation for the greener pastures of tax representation. They were advertising on a Chinese language radio station here yesterday.

Death&Taxes (talk|edits) said:

12 August 2008
Maybe they should get into Cost Segmentation? Must be popular; it is all over this site.

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