Can Your Dog “Fetch” a Tax Deduction?
Pets are a very important part of our everyday lives. They are our unconditional companions and provide us with joy and love each and every day. In addition to all of the joy and happiness they bring, you may be surprised to learn that your pet may also save you some cash on your annual tax return. That’s right! There are expenses that the IRS allows you to deduct for your special furry friend. Caring for your pet can get expensive so take a look at the list of things that you might be able to deduct come tax time:
1. Relocating: If you are moving and are able to deduct your moving costs, you can also deduct the cost of relocating your pet, as any other household belonging.
2. Service dogs: Seeing eye dogs or other pets with service oriented training can be deducted on your next tax return. The IRS will not simply take your word for this; you must maintain the appropriate documentation and tags for this to apply. The IRS allows you to deduct medical expenses, food, training, grooming and veterinary expenses – basically anything that helps to maintain the health of the service animal so that it can perform its service duties.
3. Charitable contributions: While you cannot generally deduct an adoption fee to a shelter or rescue organization, if you add an additional charitable donation over and above any adoption fee, this may be tax deductible. Of course, the organization would need to be a non-profit in order for you to deduct this additional contribution.
4. Fostering pets: If you foster animals for an IRS approved charity, you may also be able to deduct things like pet food as well as other supplies like cat litter or even vet bills.
5. Guard Dogs: If your dog functions as a true guard dog and actually protects something valuable like a business or gated home, then you can deduct the dog’s services.
While your pet will not be able to be classified as a traditional dependent on your return, pet related deductions can add up and take a bite out of your next tax bill. Just be mindful to keep good records as backup just in case the IRS comes back with questions or an audit.
Some of the rules and parameters surrounding these deductions are a little vague, so you may want to have your tax return checked by a professional if you are not sure that the deductions are allowed. A tax firm can review your return, analyze all potential deductions and even identify areas that you may not have thought of (like deducting some pet expenses!) to help you keep money in your pocket and save you time and stress on your tax return.
Success Tax Relief has built a strong reputation for working tirelessly for our customers, communicating to the IRS when needed and having an extensive knowledge of all current tax law. We can put this experience to work for you – just give Success a call now at (877) 958-6638 or contact us online.