6 Pet-Related Tax Deductions

Leon LaBrecque, managing pcartner and CEO at LJPR Financial Advisors, claims that the new tax law evens the playing field in a way for those Americans that feel like their pets are their children. “We don’t get an exemption for our kids anymore and we don’t get an exemption for our pets either.” Here is a list of 6 potential deductions or changes to the law that deal with our four-legged family members:

Business Animals

This deduction is available for animals that live at the place of business. The animal could be for security purposes, rodent control (barn cats!), etc. The deduction could include veterinary care, food, and training.

Shipping Animals During a Move

Moving expenses have been eliminated under the new tax law, and this includes the cost of shipping a pet.

Donations to Pet-Related Charities

In many circumstances, adopting an animal through a charity or an organization costs a fee. That fee is not tax deductible, but any other monetary donation to an animal charity can have tax benefits.

Foster Pets

Fostering a pet can incur quite an expense, much of which may not be reimbursed from a 501(c)(3) adoption agency. If that is the case, those expenses can be tax deductible.

Pet-Related Hobby Expenses

Though losses from hobbies that receive income were deductible, under the new law it does not appear to be so anymore according to LaBrecque.

Service Animal Expenses

For individuals requiring a guide dog for vision or hearing impairments, deductions for purchasing the animal as well as training fees or any veterinary expenses may be available.

LaBrecque says that service dogs for a medical impairment are deductible as medical expenses, but two thresholds must be met: “First, all medical expenses must exceed 7.5% (for 2018) of adjusted gross income to be included as an itemized deduction,” according to LaBrecque. “Second, total itemized deductions must exceed the standard deduction, which was significantly increased under the new law.”

See Emily Zulz, 6 Pet-Related Tax Deductions, Think Advisor, April 3, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.