Canadian Taxation

Cat and Tax act

Published On December 7, 2013 | By Joseph (Ken) | Business, Personal tax

cat tax

Here’s an interesting article by H&R Block though it doesn’t say if it’s related to Canadian or the US Tax Court Unbelievable Tax Deductions and Facts 

“The Tax Court decided a farmer was allowed to claim cat and dog food because they were outdoor pets meant to keep wildlife away from their blueberries. Dog food is also deductible if it is for a service dog.”

There is a MSN article that comments on similar decisions in US Tax Court 14 extraordinary tax deductions

“Cat food, part one”

“A couple who owned a junkyard were allowed to write off the cost of cat food they set out to attract wild cats. They argued that the feral felines did more than just eat; they also took care of snakes and rats on the property, making the place safer for customers. When the case reached the Tax Court, IRS lawyers conceded that the cost was deductible.”

“Cat food, part two

“A woman used her own money to care for feral cats that she fostered in her home for a charity that specialized in the neutering of wild cats. She spent more than $12,000 of her own money paying for veterinary bills, food and other items.

“The Tax Court ruled that she could claim a charitable deduction for her expenses but limited her write-off because she didn’t meet the substantiation rules. She failed to procure a contemporaneous written acknowledgment from the charity each time she spent $250 or more at the charity’s behest. With the proper documentation, though, she could have deducted all costs she incurred for the organization.”

The above is actually reasonable following the rule of thumb that an expense is deductible if it can be shown that it helps generate income.  That said, it’s always smart to talk to a tax professional before claiming any unusual deduction.

If I was the creator of the following video, and it generated income, I would consider deducting costs related to its star.



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About The Author

Joseph (Ken)
(Ken) is a Registered Public Accountant with over 25 years of public practice experience in the accounting profession. Ken specializes in accounting information systems, taxation and financial reporting.

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