Posted by Trent Accounting

Deduct These Top 5 Pet Related Expenses in Your Tax Return

Deduct These Top 5 Pet Related Expenses in Your Tax Return

The IRS may not consider our dogs as our dependents, but to us, we see them as our family members and for that reason, we should be able to include them in our tax returns. After all, we all want to reduce our tax obligations by searching as many deductions as we can get into our tax returns. Fortunately, there are some dog-related expenses that you can deduct and you probably should start inquiring about with your tax professional to ensure you’re putting in legitimate write-offs.

Moving Your Dog

If you decide to move during the tax year, you may be able to deduct the expenses you incurred in moving including the expenses related to moving your dog. Just like any of your personal expenses, moving your dog that requires special expenses will be treated the same way. In a way,  you’re saving some money because of this deduction. If the move is due to a change in employment, then you should have no problem deducting the expenses in moving your pet under current IRS regulations. It is best to talk to your tax adviser to break down the details but as for many transferees who aren’t very happy by the stress and costs of moving international or even across the United States, this should be good news. Never forget to keep the receipts when making special arrangements to move your little furry companion with you.

Guard Dogs

Do you have a guard dog? Tax expert, Cliff Ennico said guard dogs can be a legitimate write-off. You may be able to deduct the cost of caring for the dog. Only a specific percentage depending on how long the dog spends guarding. Now if your guard dog protects your business and inventory, it may possible to include the dog itself as a deduction as well.

Charitable Donations to Dog Rescues/Shelters

It’s wrong to assume that you can deduct the costs of adopting a dog from a registered non-profit 501( c ). You cannot deduct the cost to adopt a dog but you can deduct any donations made in excess of regular adoption fees. The law states that any donations where no goods or services are given in exchange can be deducted which means you can donate to your favorite 501c dog charity and ask for a letter of receipt that proves you indeed did not receive any goods or service in return. As for both goods and services donations to an approved charity, they are deductible but you have to ask for a donation receipt if the value of your donations goes more than $250. You will file Form 1040 to deduct a charitable contribution and itemize your deductions on Schedule A.

Services/Therapy Dogs

If you’re visually-impaired, hearing-impaired, or a person with physical disabilities, who needs a guide dog or other service animal to assist you in your daily activities, the IRS Publication 502 states that you can include the costs of purchasing, training, and maintaining the dog into your medical expenses. You only have to provide sufficient medical records in case the IRS ask you some questions regarding your deductions.

Jobs with Dogs Expenses

Those who own and operates dog businesses can include their dog-related business expenses as deductible. Mileage or transportation costs on the other hand for visiting clients and their dogs can be deducted if you’re a trainer. You can also itemize your expenses if you’re a dog walking and need to purchase business-related items such as leashes and poop bags. Just like any other job-related expenses, all receipts must be kept safely as proof that the items were for job duties.

Fostering Dogs

Animal Rescuers around the country can now claim the expenses coming from fostering dogs and/or cats for approved charities during tax time. The IRS recognizes an approved charity by 501(c)(3) designation as a not-for-profit organization. Eligible deductions include food, medicine, veterinary bills, crates, garbage bags, and other related fostering expenses. You may also include a portion of your utilities as a deduction as long as a specific area of your home is solely used to take care of the animals.

We advise that you discuss these pet-related deductions with your tax professional to ensure that they are legitimate and help with your personal financial and tax situation.

Trent Accounting