Foster Care For Rescues Likely Deductible As Donations

“Cat lady” that fostered dozens of cats wins case in tax court. expenses for caring for the animals is deductible. If you are working for one of the rescue organizations, simply ask for a letter to make sure you can deduct all of your expenses directly related to the fostering, such as vet bills, grooming, food and supplies, even other expenses that might be required for the “business of fostering”, if on any scale. Check with your accountant, but if you’re helping with a lot of animals, have a designated and segregated area in your home, you might e able to deduct a portion of home expenses (much like a home office), office supplies related to the fostering, etc. Check with your accountant, and have him review the ruling. Many fosters and rescuers have thousands in direct expenses, and likely have been overlooking this deduction. If you are going to deduct over $250, it’s critical that you get a letter from the charity, and must be working with and, in effect, providing “outside” services to a valid 501(c)(3) organization that is registered with the IRS. Most pet rescue groups have the required exemption, just ask them for a letter. Don’t be surprised if they aren’t familiar with the ruling. you can learn more in the Wall Street Journal article, or this tax site.