Pets can offer a few deductions
Have you been procrastinating about filing your income taxes because you are searching for deductions?
Feline fanciers sure wish we could receive a deduction on all our feline's expenses, since we do consider them family. There are, however, a very few instances when even the IRS allows a deduction for pet expenses. Here are a few of those scant exceptions.
We see examples of the most obvious deduction in our every day life experiences when we see people receiving assistance from service or therapy animals.
Therapy animals are used for every day activities, including our physical and mental health. IRS publication 502 allows for a deduction in costs relating to buying, training and caring for a certified service or therapy animal.
That mean besides training, the kibble bill and veterinary expenses are covered. Just treat this deduction like any other that may be scrutinized by the IRS, and keep all medical records and receipts organized for review.
Yes, your donations to Buddy are a tax deduction, with a caveat! The Buddy Foundation is a 501(C) 3, tax exempt, qualifying nonprofit organization, with all funds assisting our animals. So where does the caveat come into play? Any money you give us cannot be tied to a return of goods or services. A good example of this would be the adoption fee for your feline. That is a non-qualifying event.
Any donation beyond the adoption fee is a qualifying deduction. The bottom line is, any monetary donation is a donation in its entirety, as long as it is not tied in to something you receive from us. Just remember to save your receipts and canceled checks. If you donate useful goods we need for our building, always ask for a receipt.
Do you foster for Buddy, or are considering it? Caring for an animal in your home while it awaits its forever home can be a deduction as long as we do not reimburse you for expenses. While Buddy pays the veterinary expenses, food and any extras you pay for would be a qualifying deduction.
I know this to be true because this has already been challenged in a court of law. The results of Van Dusen v. Commissioner control here, so save those receipts.
Just remember, charitable deductions can be deducted on Form 1040, under Schedule A.
Lastly, have you recently moved or relocated? In some instances you can add pet moving expenses in with your lump sum moving expenses, as these are not itemized. Examine IRS Publication 521 before you do this and consult with your accountant.
You may be able to deduct transportation and extra care need of your feline, including extra boarding or veterinary expenses. Just keep those receipts to prove they are associated with the move.
Animal lover and feline fanciers, unite. We will find a way to find a deduction for our passion for animals!
Featured felines:
• Dixie arrived at the shelter with her three brothers, who have all been adopted. She was the shy one and has been overlooked. Still a bit on the shy side, Dixie will cautiously come out, especially if we are handing out treats to the other residents.
She won't crawl into your lap, but if you sit on the couch or on the floor she just might decide you are OK and sit next to you. But you will have to be patient to find out that Dixie really is a nice cat.
• Mittens is a gray and white male that came to Buddy as a stray. The couple who brought him in were helping several other stray cats when Mittens came into their backyard. The other strays were picking on this newcomer.
He was approachable and, after a while, the couple was able to catch him and bring him to the shelter.
At first, he was afraid of most people and cats, but over a few months he came around and is now in one of the cat rooms. He is still a bit shy, but likes treats and will let you pet him. He also has made friends with some of the other cats in his room
• The Buddy Foundation, 65 W. Seegers Road, Arlington Heights, is a nonprofit 501(c) 3, all volunteer, no-kill animal shelter. For information, call (847) 290-5806 or visit www.thebuddyfoundation.org.