Do Dog Breeders Pay Tax? (Solved & Explained!)

Yes, dog breeders must pay tax, although some states and countries will offer exemption for ‘hobby breeding’. Hobby breeders are breeders who produce only a litter or two a year that they sell and the proceeds are not considered substantial enough to fall into the category of business sales.

That said, it really depends on your location, so you need to check local laws and go into it with the expectation that if you are selling puppies, you will most likely also be paying taxes on them as well.

In today’s article, we’re going to take a closer look at the financial aspects of dog breeding. Can it be a business? What are examples of the actual costs of breeding a litter?

Read on for important information that you need to know if you are considering a dog breeding business or breeding as a hobby!

Do you have to pay tax if you sell puppies on Facebook?

Yes, any sales that you make on Facebook should be viewed the same as if you were doing business from your own personal webpage. You will need a business license to sell puppies in Texas, as well as a Tax id, and you will need a Seller’s license if you are located outside of Texas but wish to sell there.

Facebook Marketplace is just the same as selling anywhere else online. If you sell puppies there, there will be tax.

Is advertising my breeding business tax deductible?

Yes, paid advertisements targeting people doing ‘dog breeder city-name’ searches are tax deductible, Basically, any marketing and advertising done for keeping or generating new customers is considered to be a necessary and reasonable expense, so you can deduct if from your taxes when you file.

Do you need to declare income from selling puppies?

Yes. While there are some exceptions based on country when it comes to ‘hobby breeding’, in most cases you will need to declare any puppies that you sell and pay the appropriate taxes on them.

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If you are talking about 1 or 2 litters a year, then you might be able to exempt paying taxes in that they might fall under ‘hobby breeding’ – but more often than not, if you sell your pups, you must pay taxes.

What is considered a hobby breeder?

A hobby breeder is someone that has animals who breed once or twice a year and who does not consider the proceeds to be a form of income. Qualifications may vary state to state and are definitely different in every country, so you need to check your local laws to see if you qualify.

That said, in most cases, you should expect to pay taxes. You don’t want to get audited down the line by making the mistake of assuming that you don’t owe them!

Can dog breeding be a business?

Yes, dog breeding can be a business, but you have to select the right kind of business model if you want it to be profitable. Many dog breeders so this as a labor of love and are lucky to break even, however, if you sell high-dollar breeds then it can certainly be profitable.

Look at French Bulldogs, for instance. These pups command $3500 per pup and if you consider that each litter might be 6 puppies, that’s $21k for one litter before you deduct the vet, feeding, and housing costs. So, yes, it can be a business, you just want to plan carefully.

What is the cost of breeding a dog?

People don’t think about all of the costs that a breeder must pay, so when they see the cost of the pups they often have a lot of questions before they understand why it’s sometimes very high.

Aside from the time and care that it takes to isolate specific traits, here are some examples of costs that breeders have to ‘shoulder’ when providing high-end purebreds to new owners. Note: We’re just providing low-end rates here:

  • Prenatal and postnatal care for 4 vet visits – $150
  • Xray and Ultrasound – $40
  • Emergency C-section – $350
  • Deworming a litter – $15
  • Puppy food – $40
  • AKC registration – $29

These are just a few examples of costs, but with most predictable factors, a litter of pups can cost $1600 on the low-end to raise in the first place. A lot will depend on your breeding stock and the actual breed and this is by no means a comprehensive list of costs, but rather a taste of expenses and startup costs that you can expect.

How much money do dog breeders make?

The reported salary for dog breeders in the U.S> is estimated to be around 25k on the low-end, while the top 83% of breeders are making closer to 75k per year.

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A lot will depend on the breed of dog’s that you are providing, of course, but for the most part it is a labor of love — many breeders barely break even or even find that breeding is costing them more than they make.

Do dog breeders lose more money than they make?

Sometimes this happens, most often when a breeder loves a breed that doesn’t not command a high price for pups or when they have trouble placing the pups which they have produced and end up keeping them.

This is why you need to consider which high-end dogs are most in demand in your area and feel out the market before starting a breeding business – if there is no demand and you don’t have a backup plan, you might just end up owning lots of debt and dogs.

Can dog breeding be a career?

Yes, if done right, you can make a lot of money breeding, and it’s really recommended that you start off simple. Try just having two breeding pair, for instance, of high-end dogs such as Bulldogs, and see how it goes before committing to more dogs and more pups.

This lets you feel out the market before putting a large investment into your stock. Remember, it’s better to have less dogs and to produce high-quality pups than it is to have lots of dogs and lots of mediocre pups. You’ll command higher prices and get more respect for the care you put in your animals.

What is the most profitable dog to breed?

There are a number of profitable breeds, such as German Shepherds, Rottweilers, French Bulldogs, and Siberian Huskies, just to name a few. Of course, some dogs will be in-demand in certain areas more than others, although guard-type dogs such as German Shepherds and Rottweilers will likely be popular in most places.