Service Animal

• Veterinary bills you pay for a service animal, such as a guide dog, may be deductible. The animal must be used to assist a person with a physical disability, such as a hearing or vision impairment. You may deduct the vet bills if the animal is for your use, your spouse's use or the use of any other person you claim as a dependent. Deduct the costs of a service animal, including veterinary bills, with your medical and dental expenses.
  
  

Farm and Ranch Animals

• If you operate a farm or ranch as a profit-making operation rather than as a hobby, you may deduct vet bills you pay for your livestock. You may deduct veterinary bills that are "customary and necessary" for your type of operation. Include vet bills with your other business expenses.
  
  

Guard Dog

• Veterinary bills for a dog you use to guard your business premises may be a legitimate deduction under the category of business expenses. According to the National Association of Enrolled Agents, the dog's breed should be one that could be intimidating, such as a Doberman, rather than a cuddly pup, and your business must have inventory on the premises the dog protects. If you choose to take this deduction, it is a good idea to consult with a tax professional, according to a November 2006 article by Kristin Edelhauser in "Entrepreneur" magazine.
  
  

Animal-Related Business Owners

• If you own a business related to grooming, breeding or boarding of animals, you may deduct veterinary bills for animals in your care. For example, assume you operate a stable and rent stalls to private horse owners. You note that one of the animals in your care is ill. Unable to reach the horse's owner, you call a vet to tend the animal and pay his bill. If the owner does not reimburse you, you may deduct the vet's bill as a business expense. Another illustration would be the case of a kennel owner who breeds and sells dogs. As long as he is conducting his activities as a profit-making business rather than as a hobby, he may deduct veterinary bills for his breeding stock and puppies. Bills for his personal pets would not be deductible.