You walk dogs. You don't walk through mileage logs at midnight on April 14. We track miles, separate supplies, run home office, and pick the retirement plan that actually moves your bracket.
Pet care is mileage-heavy, cash-heavy, and 1099-misclassification-heavy. The IRS wins audits here on logs and worker status. We bullet-proof both.
Driving from home to the first client of the day is commuting (not deductible). Every mile after that until you return home is deductible at 67 cents/mile in 2024. We help you log it with MileIQ or Stride so the audit-proof record beats the IRS standard challenge.
IRC §162; Rev. Proc. 2023-3Dedicated dog-walking SUV used 90 percent for business? §179 expensing up to $30,500 for SUVs over 6,000 lbs in 2024, plus 60 percent bonus on overflow. Personal vehicle? Standard mileage is usually better. We model both methods and lock in the higher one (once you pick actual expense on a car, you cannot switch back).
IRC §179, §280FLeashes, poop bags, treats, first aid kits, business cell phone, pet sitter bond (Pet Sitters International), GL insurance (PCI Insurance), Rover/Wag platform fees, background check fees: all §162 ordinary and necessary. We catch the home-pet supplies that should NOT be deducted to keep the return clean.
IRC §162(a)Bookings, client comms, scheduling, payroll for sub-walkers: all done from a desk at home. Regular and exclusive use of the space qualifies. Simplified method ($5/sf up to 300 sf = $1,500) or actual method (percent of utilities, rent, depreciation). We pick the larger.
IRC §280A(c); Rev. Proc. 2013-13When you bring on a second walker, the IRS asks who controls the schedule, the route, the client relationship. Independent contractor (Form 1099-NEC if $600+) is allowable but narrow. Employee (W-2) is heavier compliance but cheaper at scale. Some states (CA, NJ, MA) use the ABC test that almost always says employee.
IRC §3121(d), §3402; Dynamex (CA)Net profit shelter: SE health insurance premiums deductible above-the-line (§162(l)), Solo 401(k) up to $69,000 in 2024 ($76,500 with catch-up) for owner-only operations. SEP-IRA simpler but lower limit. We pick based on cash flow and time horizon.
IRC §162(l), §401(k), §408(k)Solo dog walker on Rover, $52K net, 16,400 business miles, home office in the spare bedroom. We installed Stride mileage tracking, set up the home office actual method, and opened a SEP-IRA.
$4,000 savedFederal income tax + SE tax savings on $18K of newly captured deductions (mileage, home office, SEP). Quarterly estimates restructured to avoid the underpayment penalty under §6654.