Determining Facts and Identifying Tax Issues Your client, Heather Stark, loves d

Question

Determining Facts and Identifying Tax Issues Your client, Heather Stark, loves dogs and volunteers for an organization called People for Dogs Inc. ("PFD). PFD's mission is to temporarily provide foster homes and, ultimately, to find per- manent homes for stray dogs. Heather volunteers for PFD, by temporarily fostering several dogs each year. During 2015, Heather spent a considerable amount of time and money on the dogs that she fostered, including paying for dog food, veterinary services, dog toys, feeding dishes, and other supplies. You have been asked to prepare Heather's 2015 federal income tax return.

Explanation / Answer

The issues need to be researched are -

1. As per IRS if a person incurr expenditure for any charitable organisation, then such person can claim itemized deduction.So if Heather rescues, foster animals for IRS -approved charity then your expense for dog food, veterinary services, dog toys, feeding dishes and other supplies may be deductible.

2. Whether Heather stark maintains records of all receipts, records that document your donations, and purchases for charity and if any of donations and purchases are greater than $250 he must get a letter from charity by the time he files his tax return stating the amount of donation and value of any good and service s received against donation.

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