If you buy a new home, you can deduct the cost of moving pets.
According to the 2011-2012 APPA National Pet Owners Survey, 62 percent of American households own a pet. These pets also come with financial obligations due to food, veterinary visits and procedures, and grooming. According to the ASPCA, Americans spent over $36 billion on pets in 2005, and you may want to know if any tax deductions associate with these expenses. At the time of publication, no tax deductions exist simply for owning a pet. However, the IRS does offer you a few deductions related to money spent on animals.
Cost to Move Pets
If you are moving to a different location for a new job and spend money to move your family pet by car, airplane or other method, you may deduct these expenses on your taxes. This may even include hotel pet fees if the move requires overnight lodging. You have to prove that you are moving because of a change in employment and must be moving within the U.S. or from a foreign country to the U.S. Costs associated with moving from the U.S. to a foreign country do not qualify.
Service Animals
If you are disabled, you may have a guide dog or other service animal to assist with daily tasks. The IRS considers the costs associated with these animals as a medical expense. If you are a taxpayer with a service animal, you can deduct the cost of purchasing, training and taking care of the animal. As with all deductions, you must provide documentation proving that your pet classifies as a service animal.
Proposed HAPPY Act
In the summer of 2009, a bill was introduced to the House of Representatives proposing tax credits for common pet expenses. At the time of publication, The Humanity and Pets Partnered Through the Years Act, or HAPPY Act, had not yet been voted on, but it would add a tax credit of up to $3,500 per year per pet. Any animal that you legally own and domesticate would qualify, but those involved in research or for business would not. Qualified expenses would include any money you paid to provide veterinary care and the costs associated with obtaining the pet.
Considerations
The IRS allows for deductions in the case of some losses, such as car accidents, floods and some fires. However, damage to property due to a family pet does not qualify. The IRS also allows you to deduct charitable donations to non-profit organizations, specifically those that are registered as 501(c)(3) groups. This includes animal advocacy groups to which you as a pet owner may donate money, such as the ASPCA and Friends of Animals. However, your donations must be to a qualified organization and you have to provide documented proof of the amount of the donation.
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