ETax847 Posted January 28, 2014 Report Share Posted January 28, 2014 Is the cost of pet adoption tax deductible? Silly question, but I wanted to confirm Quote Link to comment Share on other sites More sharing options...
ETax847 Posted January 28, 2014 Author Report Share Posted January 28, 2014 Deductible in the sense of a charity contribution Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 28, 2014 Report Share Posted January 28, 2014 No and No. Someone is really stretching on this one!! 1 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted January 28, 2014 Report Share Posted January 28, 2014 No and No. Someone is really stretching on this one!! Why not? You aren't buying the puppy from a pet store. You're actually making a donation to the shelter. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 28, 2014 Report Share Posted January 28, 2014 Why not? You aren't buying the puppy from a pet store. You're actually making a donation to the shelter. Are you serious? Donations must be cash or property only with nothing in return. How many shelters are 501( c )3 organizations? Quote Link to comment Share on other sites More sharing options...
ETax847 Posted January 28, 2014 Author Report Share Posted January 28, 2014 That's the argument my client tried to present to me. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 28, 2014 Report Share Posted January 28, 2014 That's the argument my client tried to present to me. This is Tax Prep 101: Topic 506 - Charitable Contributions To be deductible, charitable contributions must be made to qualified organizations. Payments to individuals are never deductible. See Publication 526, Charitable Contributions. To determine if the organization that you have contributed to qualifies as a charitable organization for income tax deductions, review Exempt Organizations Select Check on the IRS.gov website. If your contribution entitles you to merchandise, goods, or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received. For a contribution of cash, check, or other monetary gift (regardless of amount), you must maintain as a record of the contribution a bank record or a written communication from the qualified organization containing the name of the organization, the date of the contribution, and the amount of the contribution. In addition to deducting your cash contributions, you generally can deduct the fair market value of any other property you donate to qualified organizations. See Publication 561, Determining the Value of Donated Property. For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property contributed. The acknowledgment must say whether the organization provided any goods or services in exchange for the gift and, if so, must provide a description and a good faith estimate of the value of those goods or services. One document from the qualified organization may satisfy both the written communication requirement for monetary gifts and the contemporaneous written acknowledgment requirement for all contributions of $250 or more. You must fill out Form 8283 (PDF), and attach it to your return, if your deduction for a noncash contribution is more than $500. If you claim a deduction for a contribution of noncash property worth $5,000 or less, you must fill out Form 8283, Section A. If you claim a deduction for a contribution of noncash property worth more than $5,000, you will need a qualified appraisal of the noncash property and must fill out Form 8283, Section B. If you claim a deduction for a contribution of noncash property worth more than $500,000, you also will need to attach the qualified appraisal to your return. Special rules apply to donations of certain types of property such as automobiles, inventory and investments that have appreciated in value. For more information, refer to Publication 526, Charitable Contributions. For information on determining the value of your noncash contributions, refer to Publication 561, Determining the Value of Donated Property. Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 28, 2014 Report Share Posted January 28, 2014 However, non-pet-acquisition-related donations of food, bedding, toys, cat litter, etc., to shelters IS a non-cash charitable donation. I have some clients who donate bags of dry food etc. every year to the shelter where they got their pets some years ago. It's a special trip to the pet store, with register receipt and thank you from the shelter. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 28, 2014 Report Share Posted January 28, 2014 However, non-pet-acquisition-related donations of food, bedding, toys, cat litter, etc., to shelters IS a non-cash charitable donation. I have some clients who donate bags of dry food etc. every year to the shelter where they got their pets some years ago. It's a special trip to the pet store, with register receipt and thank you from the shelter. Agree with Catherine. The deductions she mentions are deductible. How many shelters are 501( c )3 organizations? ^ All of the SHELTERS (brick & mortar = "shelter", like the local Humane society and the SPCA) in my area are 501( c) 3 organizations. The larger well-known RESCUE groups that are run by a few dedicated people with a network of foster homes that care for the animals are too, as are some of the smaller rescue groups. Valid charitable donations to these organizations are documented the same as any other deductible contribution. The client should receive a letter from the organization showing that they are a valid 501( c)3 that also includes the other data required to document the contribution for tax purposes. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted January 28, 2014 Report Share Posted January 28, 2014 Are you serious? Donations must be cash or property only with nothing in return. How many shelters are 501( c )3 organizations? Here's my interpretation: When you make a donation to an organization.....you can deduct that contribution minus the financial value of anything received (Example... attending a benefit to help homeless animals. The financial value of the event (dinner etc) is subtracted from your "contribution" for tax deduction purposes.) What value does a puppy have? None. If it had any cash value it would be for sale. So...you are not receiving something financially equal to the amount given to the shelter. You're saving a life...and getting love...but you cannot put a price on that. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 28, 2014 Report Share Posted January 28, 2014 Here's my interpretation: When you make a donation to an organization.....you can deduct that contribution minus the financial value of anything received (Example... attending a benefit to help homeless animals. The financial value of the event (dinner etc) is subtracted from your "contribution" for tax deduction purposes.) What value does a puppy have? None. If it had any cash value it would be for sale. So...you are not receiving something financially equal to the amount given to the shelter. You're saving a life...and getting love...but you cannot put a price on that. The costs for adopting a pet cover the shelter's costs for vet care, vaccinations, etc. In that sense, the puppy IS for "sale." The amount is a fixed amount. If the person makes a direct donation to the animal shelter and the shelter is a qualified 501( c )3 organization, then the donation can be deductible. In your thinking, my trips to the zoo could be deductible. Quote Link to comment Share on other sites More sharing options...
SFA Posted January 28, 2014 Report Share Posted January 28, 2014 This past summer, we adopted "Gator" while on vacation in Florida. Gator is very old and has lumps all over his body. When we asked how much is the adoption fee?--they said they were waiving the fee because they were just relieved he had found a home. We gave them $80.00 anyway and now he is here running around in snow and ice for the first time in his life! Was our $80.00 a donation? Quote Link to comment Share on other sites More sharing options...
Mr. Pencil Posted January 28, 2014 Report Share Posted January 28, 2014 Was our $80.00 a donation? No. The fact that under other circumstances it might have been waived is irrelevant. You just paid a reasonable fee for the adoption service, like anyone else. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 28, 2014 Report Share Posted January 28, 2014 I wonder if the agency has to disclose what portion is a donation and administration cost. Just like when you buy a ticket for a benefit dinner. Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 28, 2014 Report Share Posted January 28, 2014 This past summer, we adopted "Gator" while on vacation in Florida. Gator is very old and has lumps all over his body. When we asked how much is the adoption fee?--they said they were waiving the fee because they were just relieved he had found a home. We gave them $80.00 anyway and now he is here running around in snow and ice for the first time in his life! Was our $80.00 a donation? Ah, the standard accounting answer -- "it depends!" What was their standard fee? $30? $40? Then the amount over that IS a donation. If their standard fee was $80, no donation. You *might* be able to make a case for the entire amount IF they put in writing that there was no fee for this pet adoption, and gave you a receipt so stating as well as a separate donation receipt. It would be an aggressive stance, probably subject to disclosure. For what tax benefit? $20 less overall tax? This one probably comes under the heading of "not worth attempting" (unless you thought of doing this years ago, in which instance this case is all theoretical, right?). Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 28, 2014 Report Share Posted January 28, 2014 Your client received something in return for his money. Unless he also received a receipt from the charity (if it is on the IRS list) with the value of his animal, and contemporaneously at that, he doesn't have the documentation for a partial deduction. I hope he's treating that puppy well !! Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 28, 2014 Report Share Posted January 28, 2014 When we adopted our Annie, the Calico Cat, she was already marked down to sale price of $75. When I first saw her, she was $100. You all know where she was headed. Six years later, she is the most arrogant, spoiled and sophisticated cat we have ever had. She needed us and we needed her. We wouldn't take a million bucks for her now. She can be a "real baby" when she wants something. End of story. I would never have even considered deducting the adoption fee.; nor should you. 2 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted January 28, 2014 Report Share Posted January 28, 2014 The costs for adopting a pet cover the shelter's costs for vet care, vaccinations, etc. In that sense, the puppy IS for "sale." The amount is a fixed amount. If the person makes a direct donation to the animal shelter and the shelter is a qualified 501( c )3 organization, then the donation can be deductible. In your thinking, my trips to the zoo could be deductible. OK...From the World Wildlife Fund http://worldwildlife.custhelp.com/app/answers/detail/a_id/5199 http://gifts.worldwildlife.org/gift-center/default.aspx?sc=AWY1200WCGA4&searchen=google&gclid=CICXj-yEorwCFZBj7AodEUQA3Q Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 29, 2014 Report Share Posted January 29, 2014 OK...From the World Wildlife Fund http://worldwildlife.custhelp.com/app/answers/detail/a_id/5199 http://gifts.worldwildlife.org/gift-center/default.aspx?sc=AWY1200WCGA4&searchen=google&gclid=CICXj-yEorwCFZBj7AodEUQA3Q Here is the key phrase... "Your donation to WWF is fully tax deductible to the extent of the law." Last I checked, Worldwildlife does not make, define or enforce tax law. My position stands. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted January 29, 2014 Report Share Posted January 29, 2014 Here is the key phrase... "Your donation to WWF is fully tax deductible to the extent of the law." Last I checked, Worldwildlife does not make, define or enforce tax law. My position stands. Keep in mind....the IRS doesn't make the law either. They are only responsible for collecting the tax. Congress makes the law....and the law is open to interpretation. The IRS publications aren't the law either...just the IRS interpretation of the law. And that was told to me at one of those IRS conferences. (In other words....what you read in a publication is NOT the final word.) So...next time I adopt a tiger....I will deduct the adoption fee! 1 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 29, 2014 Report Share Posted January 29, 2014 Keep in mind....the IRS doesn't make the law either. They are only responsible for collecting the tax. Congress makes the law....and the law is open to interpretation. The IRS publications aren't the law either...just the IRS interpretation of the law. And that was told to me at one of those IRS conferences. (In other words....what you read in a publication is NOT the final word.) So...next time I adopt a tiger....I will deduct the adoption fee! Things that are spoken at IRS conferences are not the final word about the final word either. Fact is, nothing spoken by anyone has value. Only the written regulations. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted January 29, 2014 Report Share Posted January 29, 2014 Things that are spoken at IRS conferences are not the final word about the final word either. Fact is, nothing spoken by anyone has value. Only the written regulations. No...it's not the written word. It's what the auditor says. Or, the tax court judge........ Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 29, 2014 Report Share Posted January 29, 2014 There is no "open to interpretation" in the example about donating to the WWF and *adopting* a tiger. The group is a 501( c)3 and the adoption of the tiger obviously is symbolic. The donation would be fully deductible unless one elects to receive one of their free gifts, and in that case, the donation would be reduced by the value of the gift. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted January 29, 2014 Report Share Posted January 29, 2014 There is no "open to interpretation" in the example about donating to the WWF and *adopting* a tiger. The group is a 501( c)3 and the adoption of the tiger obviously is symbolic. The donation would be fully deductible unless one elects to receive one of their free gifts, and in that case, the donation would be reduced by the value of the gift. Or unless you actually take possession of the tiger.... Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted January 29, 2014 Report Share Posted January 29, 2014 Or unless you actually take possession of the tiger.... The tiger would probably be way more valuable than the donation....so, then, should we classify it as "income"? Quote Link to comment Share on other sites More sharing options...
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