Deduction of service dog

[GradyFinance]

I have a client who trains service dogs for the handicapped. She donated a dog that she raised and trained to a veteran. She has presented paperwork to me detailing the value of the dog that she trained. I wanted to throw this out for opinions. I say all she can deduct is her basis in the animal, not the value. She of course feels like she should be able to deduct the value of the dog as a charitable donation. What do you all say? I am trying to view this in the eyes of the IRS so we do not run into future problems since the actual basis is far less than the value of the animal since her time and talent training the dog cannot be claimed as donated. Thanks.

[spanel]

I have a client who trains service dogs for the handicapped. She donated a dog that she raised and trained to a veteran. She has presented paperwork to me detailing the value of the dog that she trained. I wanted to throw this out for opinions. I say all she can deduct is her basis in the animal, not the value. She of course feels like she should be able to deduct the value of the dog as a charitable donation. What do you all say? I am trying to view this in the eyes of the IRS so we do not run into future problems since the actual basis is far less than the value of the animal since her time and talent training the dog cannot be claimed as donated. Thanks.

Did she directly give the dog to a Veteran?

If yes, then her deduction is $0 as you cannot give things to individuals and get a deduction.


Chris

[Uncle Sam]

The question should be did she give the dog directly to a veteran personally, or through a donation to a veteran's tax exempt organization?

[Kram BergGold]

Answer to the ?

If she gave the dog away through a 501 c 3 then the deduction is limited to basis.

[GradyFinance]

If she gave the dog away through a 501 c 3 then the deduction is limited to basis.

I am unsure as of right now but I do believe it was given through a 501c3 organization and not individually. I will verify when I speak w her.

[taxea]

I am unsure as of right now but I do believe it was given through a 501c3 organization and not individually. I will verify when I speak w her.

Even if given to 501c3, if it was designated by her to a specific vet....no deduction.