Thursday, November 19, 2015

Tax Claims For Pets

The cost of moving a pet may be tax deductible.


The Internal Revenue Service requires many income earners to file tax returns to ensure that they pay the correct amount of tax, but it also allows taxpayers to subtract or deduct expenses when calculating taxable income. The normal costs of owning and caring for a pet are not tax deductible, but certain pet- and animal-related expenses are deducible in special circumstances.


Deductible Moving Expenses


The IRS offers tax breaks to people who are looking for work and take new jobs, including a deduction on moving expenses. The IRS states the costs associated with moving to new job location, including the cost of shipping pets to a new home, are tax deductible. The deduction only applies if the new work location is 50 miles farther from the worker's old home than his previous work location was. For instance, if a worker lives 5 miles from his current work location, his new work location must be at least 55 miles away from the original home to qualify for the deduction.


Service Animals


The IRS lets taxpayers take a tax deduction for medical and dental expenses that exceed 7.5 percent of adjusted gross income. For instance, a taxpayer with $100,000 in adjusted gross income can deduct medical expenses that are greater than $7,500. While the cost of caring for a pet is not usually tax deductible, the IRS says that the cost of buying, training and maintaining a guide dog or other service animal is a tax-deductible medical expense. This means the vision- or hearing-impaired and other physically disabled people may be able to deduct some of the cost of their pets.


Donations to Animal Charities


Money and property donated to certain charitable organizations are eligible for tax deductions. The IRS states that donations to corporations, trusts, community chests, funds or foundations organized to prevent cruelty to animals are deductible. The World Wildlife Fund and Animal Human Society are examples of animal charities.


Considerations


The IRS lets taxpayers deduct many expenses necessary to produce business income. The IRS states that expenses that are "ordinary and necessary" in a trade or business are tax deductible. In some cases, costs related to keeping or feeding animals may be considered ordinary and necessary business expenses. For instance, TurboTax reports that the IRS allowed the owners of a junkyard to deduct the cost of feeding feral cats that helped control pests. Keeping accurate records of expenses can help filers back up claims if they are questioned by the IRS.

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