Tax man goes AWAY

ritz

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US Tax Court recently ruled that a woman taking care of feral cats in her home could deduct her expenses as a charitable deduction, including food and vet bills. She was taking care of the cats for an IRS-approved charity. (Article in Wall Street Journal on Saturday, June 11; one of the "most viewed" articles as of today.)
My question is: how do I become affiliated with an IRS-approved charity? Currently I feed 8 to 12 cats in front of my condo and have TNRd about 15. And from the charity's perspective, what do THEY have to do?
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gloriajh

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okay, where do we sign up?


The feral-born and strays have cost us more in vet bills than the 3 cats we took from relatives - and, that's not even talking about the food and litter costs, etc.
 

ldg

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Do you have a good relationship with your vet? You may want to chat with them about cat shelter/TNR charities in the area and who would be best to contact. I would suggest volunteering and/or donating money, rather than just saying that you'd like to be "officially" affiliated so you can write off your feral-related expenses - and after you've developed a relationship with them that you then broach the subject.
 
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ritz

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Yes, I will have to first become "officially" affiliated with a rescue organization before I can start taking a charitable contribution deduction from my income tax return. There is a $250 threshhold; more than that amount and you have to get a letter from the organization recognizing the contribution.
I don't rescue, foster cats from the organizations I volunteer with; I rescue cats (feed, TNR) from the in-humane owners who dump their cats when they move (usually due to eviction or foreclosure).
 

ldg

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Well if you already volunteer, that makes it easier, doesn't it? Can't you talk to them about "officially sponsoring" your rescue work? No money actually changes hands, it would just enable you to write it off.

But that was my point - you need to develop a relationship with an organization willing to do this. If none that you already work with are willing to, then I suggest talking to your vet to see if they have knowledge of foster or TNR groups that might be open to the idea once you've developed a relationship.
 
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ritz

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Good idea; I've already sent one email to the organization through whom I do TNRing ($45 and they will keep the cat overnight at no additional charge!) Drafting a second, much more local, organization, that I volunteer with on a regular basis, but whose mission is slightly different.
 

auntie crazy

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As reported on June 11th in the Wall Street Journal article "Stray Cat Strut: Woman Beats IRS":
When Jan Van Dusen appeared before a U.S. Tax Court judge and a team of Internal Revenue Service lawyers more than a year ago, there was more at stake than her tax deduction for taking care of 70 stray cats.

Hanging in the balance were millions of dollars in annual tax deductions by animal-rescue volunteers across the nation—and some needed clarity on the treatment of volunteers' unreimbursed expenses for 1.55 million other IRS-recognized charities.

Early this month, Ms. Van Dusen learned she had won her case. "I was stunned," she said. "It feels great to have established this precedent."

The Tax Court allowed her to take a charitable deduction for expenses she incurred while taking care of the cats in her home for an IRS-approved charity, Fix Our Ferals. Among the $12,068 in expenses she deducted: food, veterinarian bills, litter, a portion of utility bills, and other items such as paper towels and garbage bags.

The decision, in Van Dusen v. Commissioner, paves the way for volunteers of animal-rescue groups like the ASPCA and Humane Society of the U.S. to deduct unreimbursed expenses that further the groups' missions, such as fostering stray animals.

It also clarifies rules for anybody deducting unreimbursed charitable expenses of $250 or more, especially if they involve use of a home. It affects donors to charities and religious groups, but not political organizations.
How exciting is that?

AC
 

StefanZ

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It reminds me of a question I had with the swedish tax authority a couple of years ago. I shall tell, it may be so in other countries too.

It was a question about working farmer barn cats, or working stable cats.

Ie barn cats on farms or stable cats, who are being there in big part as mousers. Of course, not seldom they are semiferales, and allowing them to be stable cats and giving them protection, spaying etc, the owner IS doing a deed of love and charity.

One owner told, she buyed the cat food at the place where she bought also all other animal food for her cows. The sum come on the same recipe, and was on the same tax-reduction. It was of course a minor post there. Her revisor didnt said anything during all the years, nor the tax people.

So I sketched this question formally to the tax authorities. Talking about good deeds, etc... And of course working animals. I asked also about the veterinariana and spaying costs.
I knew they are afraid of reducing taxes for home pets. A right to reduce the cost for working animals may be misused.

The first answer was a cool No. But two days after it, the telephone rang, and a tax authority supervisor asked me if I was contend with the answer? I wanted perhaps to explain a little more?
So I tried best I could. I said also, there is a rat poison of the brand Tomcat.
So if I do buy the dangerous rat poison Tomcat, I do of course get tax reduction for the cost of buying. But if I use the very ecological solution of using a living cat, or even a real tom cat - I cant never ever get tax reduction for the costs?
And here I noticed this took hard on him.
After a little humming he said: Ok, I get your point, you may have right.
Yes, it can be done, as individual cases. In each case you must write a letter explaining the situation exactly and in detail, and it must be entirely clear this is a working cat, a mouser, a rat catcher, not just a pet.

This may be so in other countries too, so it is good to retell the story and spread the tip.
 
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