An Oakland, CA “Cat Lady” has gone up against the IRS and won, setting a precedent for animal rescuers nationwide. In 2004 Jan Van Dusen, a volunteer for Fix our Ferals, tried to deduct expenses related to fostering and caring for 70 stray and feral cats. The IRS considered the expenses nondeductible and wouldn’t budge so the case wound up in Tax Court.
The Wall Street Journal reported yesterday
“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 animal rescuers nationwide to deduct similar items in their taxes. An animal rescuer making such deductions should keep all their receipts. They must volunteer with an IRS approved charity and deduct unreimbursed expenses that further that charity’s mission, such as TNR or fostering animals. For deductions of $250 or more, a valid letter from the charity acknowledging the volunteer work is required.
This ruling is a great victory for animal rescuers nationwide who often spend hundreds or thousands of dollars to help abused and abandoned animals.
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