Tax Tip 431: Depreciating a Dog

Did you know that a dog is a depreciating asset and if the dog is used to help you produce assessable income you could claim a tax deduction for the decline in value for the dog?


Example

Homer is a youtuber and buys a cute dog that is funny. He live streams every moment of its life and edits videos when it did funny things – like the time it dig a poo while standing on the front of his speed boat travelling at great speed.


Homer might be able to claim depreciation of the dog based on the cost and its effective life span. Homer creates a great deal of income from his youtube channel.

Similarly for working dogs such as cattle dogs, sniffer dogs, guard dogs etc.

I wonder if a quantity surveyor could estimate the age of the dog if its birthdate was unknown.


The life of the asset, a dog, is 8 years generally TR 2021/3


Note that a camel has a 15 year life as an asset.


See also PBR Authorisation Number: 1051948550599

https://www.ato.gov.au/law/view/doc...alse&stype=find&tm=phrase-basic-1051948550599


I found this in a recent TaxBanter post which is worth a look for more details.

Can I deduct it? It depends … - TaxBanter

 

I wonder if I can do this for my pet gold fish?
I do feature it in many of my promotion business photos.

 

might have to apportion it

 

Noted thanks Terry. Now I can't wait for the day someone comes in and asks me to depreciate a camel!

 

I read an article earlier this week of the wierd things people have tried to claim on tax. Pet dogs (not working dogs) were specifically mentioned. Appartently client greeting services in the office aren't okay for my Lab.

 

Humans ?

Cliff

 

Only slaves that are income producing.

 

Note!
Get some slaves as per Terry's Tax tips.

 

You would have to try and ascertain the age of a second hand camel. It would be 15 years at birth.

 

The company doing camel tours on Cable Beach in Broome probably get good mileage out of that

 

I did ask a guy offering camel rides once how much a camel is worth. I can't remember but I think it was around $1,000

 

That is way cheaper than my gold fish.
You have no idea how much gold fish can sell for.

 

so there's a few companies around who would have that option available to them ....

Cliff

 

I believe soccer clubs put their footballers on the balance sheet and depreciate them over their estimated playing life.

 

You might get caught out if the ATO construe it as a bottom of the harbour scheme.

 

With or without the filter?

 

Interesting....
Distribute income to kids
Kids depreciate me (as i am their slave - i need to feed them, change them, drive them around - i also produce income and that income is given them )

Would that work?

 

he could use it as bait for other fishes for a fishing business ...and then claim it as a ( rapidly ) depreciating asset that might also qualify as a genuine bottom of the harbour scheme ....

Cliff

 

That is some clever idea.
Time to put that scheme into action.

 

lateral thinking or vertical integration ?