Ok, guys I'm a CPA so here's a little of my input. Yes, you can depreciate any dogs you purchase for breeding purposes. You can not depreciate the dogs you bred. You do not have to have a business plan, as long as you can prove your purpose in this "business" is to make a profit. Regardless of your age or income status. However, if you continually have a loss they are going to consider it a hobby. You should show a profit 3 out of 5 years. That's about it. This is treated the same as any other farmer raising cattle, sheep, etc. |