Tax Deductions A Guide For The Animal Lover

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In the month and year of July of 2009, Thaddeus McCotter introduced the Humanity and Pets Partnered Through the Years (or HAPPY Act) bill. This bill pushed for letting a tax deduction of up to three-thousand five hundred dollars each year for pet care-related expenses. The status of the bill at the time of this article: -œReferred to House Committee on Ways and Means.- It appears, this is not the biggest priority , you may well have a difference of opinion on this.         

So then what types of pet- and animal-related expenses are eligible for a tax deduction?      It is said that dogs have owners and cats have attendants, regardless. Our cat and dogs are near and dear to us pet owners and pet attendants. Some might lay claim our family pet worth its weight in gold). But, did you know that pet-related expenses are, in certain circumstances, eligible for tax write-offs. For example, when moving, a pet owner can file for a tax write-off for the expenses incurred in moving a family pet, in tax law in this circumstance, a family petmight be viewed as a personal belonging, and therein our pet dog or cat is counted in such a manner.             

Also a business may be permitted to write off for the costs of having a guard dog. And a voluntary host of an animal that provides a theraputic service, like a guide dog, could be allowed to deduct vet bills and expenses, and other such unreimbursed expenses (these are considered charitable donations). There have also been court room rulings that have favored tax deductions for expenses associated with the keeping of animals serving the physically-, visually-, and hearing-impaired individuals. There are also tax deductions in expenses related to the care of animals considered part of an animal-breeding enterprise.             Van Dunsen vs Commissioner — The Cat Lady Case      In 2004, Ms. Van Dusen shared her home space with nearly 80 cats (7 of them she called personal pets). She was a volunteer for a charitable organization “Fix our Ferals” with the aim of neutering feral cats.

This volunteer deducted a little over twelve-thousand dollars on her return. The Internal Revenue Service argued that the tax payer was rescuing cats on her own rather than as a part of a charitable organization. The tax court refused the defence. The court sided with the Internal Revenue Service, however, that quite a few of these expenses ( wet/dry vacuum repair cost, DMV fees, Costco membership dues, and State Bar Dues) did not constitute exclusively charitable expenses.             Ultimately, all of the individual expenses exceeding two-hundred fifty dollars were disallowed as Ms. Van Dusen failed to present the proper verification for these charitable donations (such as a simultaneous or contemporaneous prepared verification from the donee.) For the deduction to be allowable, the donee must also file a return with the IRS reporting the info comprising the written acknowledgment, such as: 1) the amount of cash contributed; 2) a description and good-faith estimate of any services or goods obtained in exchange; and 3) if the donee supplies any immaterial, intangible or religious benefits, a statement to that effect). So if you desire to write off the expenses for your 70 cats, make sure you are acting on the part of an satisfactory charitable organization and be sure you get the necessary documentation.            

How do I determine the difference between tax deductable and non-tax deductable animal or pet care-related expenses?      So you see there are possibilities for tax deductions for the expenses borne by care of pets and animals. And there can be circumstances when these expenditures are not tax deductable. If you are looking into a tax deduction related to the costs of looking after pets or animals, request the direction of a certified public accountant (or CPA). Don’t suppose that because your next-door neighbor owns 15 cats, she or he is able to supply you educated pet- and animal-related tax deduction information and advice.             

In a weird instance, a landscaper and gardener attempted to deduct for the expenses of caring for a dog which assisted him in pulling a cart while on the job, assumedly without the counsel of a tax accountant. This awarded the landscaper/gardener an Internal Revenue Service audit. You can assume this triggered some working-relations strain, but we are unable to confirm this possibility. Nor is it likely that either boss or dog will speak out anytime soon.


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