I think you’d have a hard time convincing the CRA that the dogs are not primarily pets and thus all expenses associated with them are personal and not deductible. Maybe as medical expenses? I am not sure if it says anywhere that all family members have to be human. It probably does however.
I’ve seen expenses claimed for junk yard dogs by a salvage yard. Classified as security expense. Both food and vet fees. Now, a junk yard dog is pretty viscous, so I don’t know if I’d ever consider one a pet. And, what kind of a CRA audit would ever pick it up?
I claim dog and cat expenses for most of my farm customers. Barn cats are mousers - they control the rodents. Dogs bring in the cattle, guard the sheep, keep the coyotes at bay, chase the bears. It is a well known and accepted fact that farms have dogs and cats, not as pets, but for what they do on the farm.
@healthymanccc
I find it very helpful to maintain an annual writing summary of activities, bookkeeping conventions, business income types, business asset types, and business expense types.
This would include farm animals used as guardians and mousers etc. List the names, date of birth and current age, responsibilities, and sleeping quarters. For entertainers such as magicians and entertainers I do something similar for their birds and dogs etc. It is the verifiable business use that matters. To support the claim I have my client take photos in situe to verify the claim. A picture speaks volumes. When helpful I have a drawing of the property, buildings, dimensions, etc. Property diagrams and building diagrams and photos with vehicles, farm equipment, animals, etc provide a clear picture for those novice, eager beaver tax reviewers and auditors and help you if you need to escalate to a supervisors or a Notice of Objection when also supported by financial documents, consistency over years, and pro-rating if required.
I agree with what @obhorst said.
Though sometimes if I happen to see the vet bill for a very small dog, I might questions how it is considered a farm dog.
That little house dog on a small acreage without livestock is obviously not a farm dog. That big fat cat that lounges around the house is not a farm mouser either.
Anyone have a sheep farmer with a donkey to guard the sheep? It can make a nasty mess of a coyote.
I wandered across a sheep field years ago. I still remember the sheep gathering around the donkey and all of them with their eyes glued on me.
Donkeys and mules (donkeys bred with horses) have been known to take down a coyote but they are not the best choice for protecting a livestock herd from coyotes or wolves. Their flight instinct is stronger than their fight instinct unless cornered.
A Mossberg 835 does a decent job of cleaning up around the farm… but if you’re not able to babysit your newborn calves (which really attract the predators) a Turkish Kangal would be one of my first choices. I wouldn’t have any issue deducting expenses related to the Kangal or similar dog against farm income.
What size/weight makes it a farm dog? If it was a small dog on a large acreage with livestock would it be a farm dog? Shelties (Shetland Sheepdog) are small dogs that are excellent herding dogs, but not nearly as big as some other “typical” farm dogs. A Pembroke Welsh Corgi is even smaller than a Sheltie and is a cattle-herding dog breed. Dogs on a farm are not only for herding sheep, cattle, or other animals but are also used as watchdogs. I dare say there would not be much that a little chihuahua would not alert you to but I can’t imagine them chasing cattle. That big fat cat that lounges around the house could be full from all the mice he caught in the barn the night before. LOL
In the end, If the client says the animal is used for business purposes that is what you go with and let CRA dispute it.