Great news! Fostering animals is tax deductible!

FOSTERING ANIMALS IS TAX DEDUCTIBLE

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"Updated February 29, 2012

 

If you foster or rescue animals, your expenses for things like cat food, paper towels and veterinary bills may be tax-deductible, thanks to a June, 2011 ruling by a U.S. Tax Court judge. Whether your animal rescue and foster expenses are tax-deductible will depend on several factors.

Donations to Charities

Donations of money and property to IRS-recognized 501(c)(3) charities are generally deductible, provided that you maintain proper records and itemize your deductions. If your rescue and fostering work furthers the mission of the 501(c)(3) group that you are working with, your unreimbursed expenses are a tax-deductible donation to that charity.

Is it a 501(c)(3) Charity?

A 501(c)(3) charity is one which has been given tax-exempt status by the IRS. These organizations have an ID number assigned by the IRS, and often give that number to their volunteers who buy supplies so that they do not have to pay sales tax on those supplies. If you are working with a 501(c)(3) shelter, rescue or foster group, your unreimbursed expenses for the group are tax-deductible.
If, however, you are rescuing cats and dogs on your own, without an affiliation with a 501(c)(3) organization, your expenses are not tax-deductible. This is a good reason to either start your own group and get tax-exempt status, or join forces with a group that already has it.
Keep in mind that only donations of money and property can be deducted. If you donate your time as a volunteer, you cannot deduct the value of your time from your taxes.

Do you Itemize Your Deductions?

If you itemize your deductions, you can list and deduct charitable contributions, including your expenses from animal rescue and foster work with a 501(c)(3) group. In general, you should itemize your deductions if those deductions exceed your standard deduction, or if you are ineligible for the standard deduction.

Do You Have Records?

You should keep all of your receipts, canceled checks or other records that document your donations and purchses for the charity. If you donate property, like a car or a computer, you can deduct the fair market value of that property, so it is important to have documentation of the value of the property. If any of your donations or purchases are greater than $250, you must get a letter from the charity by the time you file your tax return, stating the amount of your donation and the value of any goods or services you may have received in exchange for that donation."

TAX BREAKS FOR FOSTERING ANIMALS!