Question:
If I were to adopt some animals from a 501(c) 3 charity, is the adoption fee tax deductable from either my personal taxes or my corporation taxes? I intend to adopt them regardless but was just wondering as I give regular donations to animal shelters and they are deductable but wasn't sure about adopton fees.
Thanks
Answers:
The dog shelter is headed for trouble if they say all payments to them are deductible just because they are a recognized charity. They are providing a service in return for your fee, so it's not deductible, just like it's not deductible when you rent a church for a wedding. If they can document that the adoption fee is inflated to force you to make a donation, then the overcharge could be deductible. This would be sort of like a benefit dinner where you pay $100 for a rubber chicken meal worth $12 and deduct $88.
The same charity deduction rules would apply to corporate taxes.
Not deductible, as you are getting something of value for your money---the animals. If you just gave them money, and did not take any animals, you could deduct that.
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