Tax breaks for pet foster parents...make sure you claim yours!

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Comment by Amy, Cubbie, & Ollie on February 27, 2012 at 8:09am

Richard, as long as you received something in return for what you paid, you can't take a charitable deduction.  It doesn't really matter how the money is used, it is just the fact that you are getting something in return.  One could argue that a puppy from a breeder costs $2000+ so the value of what you receive (the adopted dog at "rescue prices") actually exceeds the your donation to the charity.

Comment by Richard Crowe on February 26, 2012 at 6:04pm

This is a question that I have wondered about?  If a City Animal Shelter charges an adoption fee of $35 for a dog and a rescue organization may charge between $250-$500 or even more for a dog (because the adoption fee goes to fund the vet care that dog and other dogs may receive or have received); shouldn't at least some portion of the rescue organization's rescue fee be tax deductible since it is funding the rescue organizations efforts?

Comment by Amy, Cubbie, & Ollie on January 9, 2012 at 1:32pm

I on a somewhat related note...I was behind a woman at the pet supply store the other day who kept going on and on and on about how unfair it is that you can't claim your pets as dependents on your tax return in order to get a deduction.  She kept insisting that we all needed to write our congress person in order to get a pet deduction added to the tax returns.  Her entire cart was full to the top with cans of cat food, and the poor cashier was trying to hurry and scan everything to get rid of the woman. 

Comment by Lucy and Sophies Mom on January 8, 2012 at 4:34pm

I would like to clarify that when I said below that I didn't realize how expensive volunteering was, I wasn't referring to fostering (as your expenses can be reimbursed).  I was referring to other volunteer functions that I'm involved with such as Pet Therapy.

Comment by Karen & Jack on January 8, 2012 at 1:23pm

I agree with Jacquie. I have always itemized my taxes, and I was deducting mileage expenses for transporting dogs for 501c3 organizations back in the 90s. That has always been allowed and I was originally informed of that by my CPA who is also an attorney.

Comment by Jacquie Yorke - DRC Director on January 8, 2012 at 12:54pm

When our fosters & volunteers have out of pocket expenses and want to donate those expenses, we have them fill out an expense report, attach receipts and write "DONATED"...We then provide them with a tax receipt for those expenses.

That is pretty much standard procedure when the fostering is done on behalf of an organization that is tax-exempt  under 501(c) (3) of the IRS tax code.

I think this new ruling may concern independent rescuers who are acting on their own versus those acting as volunteers for a registered public charity. It may also cover those that foster for rescues that operate as not for profit, but do not have 501(c) (3) status with the IRS.

Comment by Lucy and Sophies Mom on January 7, 2012 at 8:00pm

The only downside to this is that you must itemize your taxes in order to be able to take the deductions.  I asked H&R Block about volunteer expenses a few years ago, and was told that is the only way.  I personally think that there should be a line on every tax form to claim volunteer expenses.  I had no clue how expensive volunteering was!

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