Here’s How You CAN Claim Your Pets on Your Taxes

Understanding Taxes

Here’s How You CAN Claim Your Pets on Your Taxes

Is Your Insta-Famous Cat a Tax Deduction?

Yes you can love them, and they are amazing companions, but the CRA won’t generally allow you to claim pet costs on your taxes.

Pets are not considered “dependents”, so their medical care (along with the cost of ownership) is considered to be personal consumer spending, optional, which is not tax deductible, despite their importance in our lives.

UNLESS…

1. Your pet is part of a working farm operation (registered business) and the animal has a productive role in the generation of income from farming.

You could also argue that your pet, who earns you a taxable income from social media brand sponsorships and exposure (Insta-famous), has associated business costs that are necessary to continue to generate income.

The CRA will likely require you to demonstrate that the intent of your business activities claims is to earn a profit (through a review request in the six years after you filed), so it’s a good idea to keep track of your business activities including financial transactions, clients closed & prospected, marketing activities, and time allocated.

Use professional invoices to document all your payments received, and keep on file paper or soft copies of all the receipts of expenses that you will claim for the business overall, not just associated with your pets. Here is a spreadsheet (template) you can use to topline each year of your business activities revenue & expense claims, for your tax preparer or to prepare yourself for filing:

T2125 worksheet (Note: you must take a COPY of the file first, to make any edits)

2. Your loving pet is a certified service animal specially trained to assist with your medical impairment. You can claim the cost of the animal, their care, food & vet bills.

Pets that are your emotional support animals, but they are NOT specially trained for a specific task to help you, do not qualify.

I know it might not be the answer you were looking for, but at least you know.

If you’re late filing your income tax returns for this year and many back years, send me a DM. I specialize in helping Canadian residents who are 5-10 years behind in filing their taxes, often self-employed, and usually ADHD or anxious about dealing with the CRA.

To your financial confidence!

If you’d like my help with your personal tax situation, refer to the image below

Tax Fairy Godmother
Debbie Horovitch

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