PROPOSED TAX DEDUCTION FOR PET CARE: THE HAPPY BILL

[Marissa and 'Mickey']

I heard this on the radio this morning. This purposed bill would allow pet owners to deduct up to $3500 from their taxable income expenses they occurred in providing adequate pet care.

http://www.petwellbeing.com/articles/2009/08/tax-deductions-for-pet-care.cfm

[Kyoko]

Hey, I like this.

[Nancy, Ned, Clancy, and Charlie]

Please hurry and pass this. We just spent over 4,000 for Gordie (our Springer)'s surgery.

[Leslie and Halas]

Guide dogs and other animals can be deducted as medical expenses if they're used by "visually impaired, hearing impaired or other physically disabled persons." I'm sure the IRS has their own definition of exactly who fits into this category. And I'm not really sure if that's for the initial purchase of the animal, the on-going expenses, or both. And if you were a dog breeder, most of your expenses would be considered business expenses. So those are the only ways you could be taking your expenses now. I'm not sure what they are getting at with the 3-year thing. Generally, you can only deduct expenses incurred in the current tax year anyway, so you wouldn't be able to pick up older expenses. It sounds like that is just some way to keep people from doubling up on their expenses - taking them in 2 places on the tax return in the same year, or taking an expense in year 2 that was already taken in year 1. I'm curious about where this would go on the tax return. Your medical expenses have to be really high before you really get to deduct any of them, and even then, they are part of your itemized deductions, so if you don't itemize, they don't do you any good. So it would be better if the expenses could be deducted as something besides a medical expense. I can't imagine how they would keep people from cheating on this. In 1987, when the IRS started requiring that the social security numbers of dependents be listed on the tax return, millions of dependents disappeared. I don't know what they would do to have you prove you had a pet, but I'm sure lots of people would suddenly find pets.

[Michele Barton]

I'm not an accountant, but I looked up these sections, and 162 is for business expenses, 213 is for medical expenses for taxpayer, spouse and dependents. No mention of pets. Maybe we can claim them as dependents??? That would be sweet!

[Chris & Boys]

Any Certified Tax Accountants on DK that can check into this??

[Marissa and 'Mickey']

Chris, I also was confused about that.

[Chris & Boys]

I am confused, granted I have only had one cup of coffee this a.m.......but it states:

"Under this bill, a pet's owner could not cover amounts which were deducted under IRC sections 162 (ordinary and necessary expenses) and 213 (diagnostic and similar procedures, medical devices and other medical expenses not covered by insurance) during the past three taxable years."

Does this mean we could currently be deducting some of our expenses already???????

[Adrianne Matzkin]

If this passes, then more furparents just might think twice about NOT taking them to the vet. That would be just fantastic!

[Joanne ~ Spud*]

Wow! Great idea. I think I am already there. I'll keep saving reciepts. Great incentive to take proper care of your animals.