(Deductibility Of Business Expenses And CCA) Lorna Jung is a psychiatrist whose private practice specializes in treating children with psychi- atric disorders. Her husband, Alec Jung, was the president of a very successful mental health clinic until it was bought out last year. He is currently creating and testing recipes to be included in his new ground breaking BBQ cookbook. Over the past two years, Lorna has been investigating the patient benefits of having a therapy dog as part of her practice and has amassed an extensive library of clinical studies that show the effectiveness of this therapy. She is convinced that the use of a therapy dog will be advan- tageous to many of her patients and will improve the rate of their recovery. On january 2, 2017, after much research, Lorna purchased a Labradoodle puppy for $2,000 that she named Sigmund. This particular breed was designed to be used as therapy dogs and Sigmund's mother was a well established therapy dog. Sigmund became an important part of the Jung family. Whenever Sigmund wasn't in training or at Lorna's office, Alec would take Sigmund for walks and to the dog park. As Alec currently has no source of income, he charged Lorna the going rate of $20 per 1 hour (minimum) walk. He plans to report this income on his tax return. For the month of September, 2017, Sigmund accompanied Lorna to consultations with all her patients except for those few who had a fear of dogs. She saw an immediate improvement in the attitudes of almost all her patients. Some children who refused to speak with her, could describe their feelings when they addressed Sigmund. As word of Lorna's success with her therapy dog treatments spread, new patients would register only if assured that Sigmund would be present. On Lorna's website, she had two hourly rates. The one with Sigmund participating was 15 percent higher than the rate without Sigmund. By December 31, 2017, 70 percent of her patients were paying the higher rate with Sigmund. On July 1, 2017, in anticipation of taking Sigmund to the office and patient's homes on a regular basis, Lorna signed a 3 year lease for a Lexus SUV with sufficient room in the back for a sturdy, well-padded dog crate. The lease payments were $950 per month. The manufacturer's list price for the vehicle was $65,000. As the Jungs have two other vehicles, this SUV was used only for business purposes. For the year ending December 31, 2017, Lorna spent the following amounts on Sigmund: Food, including puppy vitamins and supplements $2,600 Veterinary fees 800 Therapy dog training course fees 1,400 Dog walking fees paid to Alec 3,280 Car lease for SUV [($950)(6)] 5,700 Operating expenses for SUV 2,950 Purchase of paw protectors (good for one winter) 140 Purchase of custom made protective clothing (estimated life of 3 years) 820 Dog crate 400 Total Dog-Related Expenditures $18,090 Lorna's tax accountant informed her that Sigmund's original cost could not be written off as there was no specific CCA class for dogs and CCA Class 8, the usual catch-all class, specifically excluded animals. In 2019, Lorna's parents were in a car accident that left them both severely injured. After much thought, she decided she had to close her practice in order to care for them and help in the long rehabilitation process