Dogs on hand - asset or livestock?
The hardest working employee on the farm is the loyal farm dog, rain, hail or shine, they pull some big days & cover more ground on the land without the high CO2 emissions of a four-wheeler.
Feeding and caring for them is a large expense, somewhere between $4,000 - $5,000, however they are worth their weight in gold!
Dogs should be treated as a fixed asset & depreciated on a straight-line basis over the lifespan of the dog’s estimated work life (roughly 4-5 years), this is rather dependant on the dogs’ genetics, health, and injuries they may sustain over the period of their working life, as some will reach their useful life faster than others.
So how should GST be treated for working dogs??
If you have purchased from a GST registered seller, then 100% of the GST can be claimed, such as the purchase price of the dog, food, registration, vet bills & kennels.
You cannot claim GST for the purchase of a farm dog from someone who is not GST registered.
Got questions? Get in touch, we can help with that!