A Heads up for those who donate time and resources to charities

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http://online.wsj.com/article/SB10001424052702304778304576377744105236346.html

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.

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[NYC_SKP]

1. Thank you for posting this.

The law, tax law, is an ass.

Teachers can't deduct personal expenses for paper and supplies and food they bring in for kids (beyond some few hundreds per year), yet a CEO can write off his hummer or jet.

This is refreshing news!

:kick:

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3. It's going to change some rules, I think

Though to be honest, I can see the rich making a fortune on this kind of tax deduction in one way or another.

To be sure, it will be fantastic for those who devote a lot of time and energy to charities or volunteering in general, but there are so many sharks out there who will manage to take advantage without putting the work into it.

[kath]

2. It-s total b.s. that the mileage deduction rate for doing volunteer work is only 14 cents per

mile, while the business rate is 40 or 50-something cents per mile. The medical rate is somewhere in the middle. All three should be at the same rate that rich businessmen or business owners get.

(they made a one-time exception for charitable work involving the Katrina aftermath, but for all other volunteers, itis and has been 14 cents.)