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Welcome To Dr. Pinney's Pet Blog

Dr. Pinney's Pet Blog offers a glimpse into the dynamic and ever-changing world of veterinary medicine and pet health care.

In addition, our pet blog offers money saving advice and tips for the frugal pet owner in all of us!

Thursday, Nov 17, 2011
Tax Planning
By Dr. Chris Pinney
Thursday, Nov 17, 2011 04:35
The end of the year is fast approaching and with that comes some last minute tax planning. Here's one contribution to the bottom-line:

Did you know that if you care for feral animals or foster pets, you may qualify for a tax deduction for out-of-pocket expenses? In a recent court case (Van Dusen v. Commissioner, 136 TC No.25), the court ruled in favor of a taxpayer who deducted out-of-pocket expenses (as charitable contributions) that went toward the care of foster animals. These expenses included veterinary services, pet supplies, and a portion of the household utilities.

Interesting, huh? Now, before you start planning ways to spend your big refund check, understand that you just can't go out and rescue or foster animals and then automatically claim a big deduction on your taxes. In order to do so, the pet(s) in question must be "sponsored" by a qualified charitable organization. And "qualified" means that the organization you work with must be qualified through IRS tax codes as a 501 (c)(3) charitable organization.

If everything lines up, Uncle Sam requires you to keep good records and receipts of all expenses incurred, including veterinary expenses, as well a copy of the animal's veterinary medical record itself. And keep in mind that I'm not an accountant, so check with yours about this before heeding any of this advice.