What do other sitters do for Tax Deductions?

The IRS has a lot of exclusive use rules when applying for deductions. I will deduct the mileage for trips to clients homes and the cost of my business cards and other advertising, a portion of my home internet and cell phone bill since I'm required to send rover cards when I do walks and do most of my business (including tons of tax research lately) on my phone by text or the rover app plus the occasional phone call. I will also be deducting the cost of my pet CPR class as that is education directly related to my business. I can't claim my home office because I pay personal bills and eat my dinner and mend my clothes there and I can't claim my computer because I use it to pay personal bills, surf the web for non-business use, personal photography editing, etc-doesn't fall under the exclusive use mandate. I'm not bothering with the cost of treats because I don't give that many, but if I buy more poo bags, I will deduct those as I no longer use them for my own dogs but I have a stockpile from the days before having a backyard. I have no clue about the damages deductions but I'd venture a guess that the IRS would expect you to have insurance that would pay for that. Ask a tax professional about that one. It could be especially tricky.

For tax deductions, it would need to be something directly related to the business. Unless you use your iPad ONLY for Rover and nothing else, I don't think you could include it. But stuff you buy for the clients' dogs, yes, by all means claim that. I keep a record of the miles I drive to and from clients' houses for both M&G's and stays. I also claim advertising costs (business cards, etc)

The training classes... that's iffy. I would say no, but a case could be made for them (continuing education that benefits your business) if you use what you learn on clients' dogs. I'm also not sure about the cleaning supplies or carpet cleaning. Yes, that would be something connected to Rover, but not exclusively Rover. If you bought cleaning supplies that you only used for messes made by a client's dog, or if the carpet cleaning was only in the spot the client's dog peed, you could get away with it.

Repair of damage of your property caused by a client's dog is a deduct-able expense (if not paid for by the owner). Vet care for your own dog would only be deduct-able if he or she was attacked by a client's dog, and the client didn't reimburse you.

If you have established yourself as a sole proprietorship or LLC, then you will be able to claim the deductions. You can't take tax deductions for a home business that doesn't (legally) exist, so make sure you have completed any forms or registrations that may be required for your state. I'm blessed in that I live in Texas, where Sole Proprietors don't actually have to register as a business, we just have to pay a Sales and Use Tax. Contact the comptroller to find out what your sales tax percentage is, and how often you have to pay it. I was placed on a quarterly schedule, which means that I have to add up all of my "total sales" from boarding income, and pay a percentage of it to the government.

You can then claim all expenses and damages under your business, but do keep a careful ledger of expenses AND income so you have the numbers when you need them. Businesses have to file a profit/loss form as part of the annual taxes, so you'll need all your receipts for that later on.

Consult a tax professional in addition to reading the materials at the IRS site Walt linked above and the Instructions to Schedule C.

Be careful about what you claim or attempt to claim. Computers are capital equipment. If you only used your iPad for business, it would have to be depreciated for longer than a one-year period.

Also, if you are going to claim deductions for the business use of your home, you should be clear about the limitations, as explained in this government doc: https://www.irs.gov/publications/p587...