Exclusive News: Adopt A Pet In 2012? Foster Pet Deductions May Be Allowed

In recent news, the federal courts are determining if adopting a pet in 2012 is eligible for a tax deduction. Mostly courts throw out such issues, but a court judge just might change their attitude. The reason for the re-consideration? A woman has sued the Commissioner of the IRS for “unreimbursed volunteer expenses while caring for foster cats in her private residence.”The expenses include “payments for veterinary services, pet supplies, cleaning supplies and household.” The suing occurred because of the IRS charging her over $12,000 referencing charitable contribution that was made on her taxes, in which she fought back and she won most of the money in her case. The only compensation she wasn’t reimbursed for were expenses that weren’t linked to pet care in any way.

Because of this determination by the IRS, they will “recognize expenses relating to fostering dogs and cats for approved charities.” An approved charity is one that is not-for-profit, consistent of a 501(c)(3) appointed charity, therefore pet supplies, vet bills, among a few others, will be deductible. Some household utilities could be included, if it is deemed that they are directly associated for and with the fostered pet. Not only are fostered pets with approved charitable organizations considered deductible, but other varied organizations centered around charitable work are also included. It is duly noted that expenses totaling more than $250 must include a letter from the foster organization confirming the volunteer’s status.

Source: Jennifer Viegas- http://news.discovery.com/animals/tax-filers-you-can-claim-foster-pet-expenses-130107.html