Tax Deductions for the Animal Lover

In the month of July of 2009, Thaddeus McCotter introduced the Humanity and Pets Partnered Through the Years (or HAPPY Act) bill. The bill pushed for enabling a tax write-off of up to three-thousand five hundred dollars every year for pet and animal care-related costs. The current standing of the bill at the date of this publication: “Referred to House Committee on Ways and Means.” It would seem that this just isn't the number one priority , you might have a difference of opinion on the bill's importance.



So what kind of animal- and pet-related expenses are eligible for a tax deduction?

The family pet is near and dear to us. Some might think our pet worth its weight in goldpriceless). But, did you know that pet-related expenses are, in some circumstances, eligible for tax write-offs. For example, when moving, a pet owner may file for a tax write-off specifically for the expenditures borne by relocating a family companion, in tax law under these circumstances, a pet might be thought of as a personal effect, and as such Mittens or Spot is counted likewise.



A business might be permitted to write off for the costs related to having a guard dog. And a volunteer sponsor of a therapy animal, like a seeing-eye dog, might be able to write off vet bills, and other such unreimbursed expenses (thought of as charitable donations). There have likewise been court rulings that have permitted tax deductions for costs associated with caring for animals which serve the visually-, hearing-, and physically-impaired persons. There are also tax breaks in expenses related to the care of animals considered part of an animal-breeding business.



TheCat Lady Case--Van Dunsen vs Commissioner

Ms. Van Dusen shared her home space with over 70 felines (seven of them she considered personal pets). She volunteered for a charity "Fix our Ferals" with the intention of neutering wild cats. This volunteer deducted $12,068 on her return. The Irs argued that Ms. Van Dusen was independently rescuing cats rather than as a volunteer of a charitable organization. The court refuted the portrayal. The court sided with the Internal Revenue Service, however, that some of these expenses (such as State Bar Dues and Costco membership dues) failed to fit as exclusively charitable expenses.



Ultimately, all individual expenses exceeding two-hundred fifty dollars were disallowed considering that Ms. Van Dusen failed to keep the appropriate required verification for these charitable donations (like a contemporaneous published acknowledgment from the donee organization.) For the write-off to be permissible, the donee must file a return with the IRS reporting the matching information that would be included in the written acknowledgment, such as: 1) the amount of cash contributed; 2) a good-faith estimate and description of any goods or services acquired in exchange; and 3) if the donee delivers any immaterial, intangible or religiousbenefits, a statement of such). So if you desire to deduct the expenses for your 80 cats, make certain you are acting on the part of an proper charitable organization and make certain you obtain the necessary documentation.



How can I differentiate between non-tax deductable and tax deductable animal and/or pet care expenses?

So you see there are scenarios for tax write offs associated with the expenses borne by care of animals and pets. And there can be circumstances where these expenses are not tax deductable. If you are looking into a tax deduction related to the expenses of looking after animals or pets, request the counsel of a certified public accountant. Do not presume that just because your friend owns twenty cats, he will be able to give you educated pet-related tax deduction advice.



In a unusual case, a landscaper tried to write off for the expenses of taking care of a dog which aided him in pulling a cart while on the job, presumably without the advice of a tax accountant. This awarded the lawn specialist an irs audit. We might assume this caused working-relations strain, however we cannot confirm this notion. Nor is it likely that either the boss or employee will provide testimony anytime soon.