Discussion:Are surrogate expenses deductible?
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> Are surrogate expenses deductible?
Discussion Forum Index --> Tax Questions --> Are surrogate expenses deductible?
| 15 February 2008 | |
| I hope someone can help me out on this. I have client's (husband & wife) that has gone through the in vitro fertilization process and it has been unsuccessful. Now they have decided to use a surrogate. My question is, are the costs paid to the surrogate deductible? How about the medical expenses and the personal expenses for the surrogate? | |
| 15 February 2008 | |
| If the surrogate is otherwise a dependent it would be deductible but if not, I don't think so | |
| 15 February 2008 | |
| Previous discussion
http://www.taxalmanac.org/index.php/Discussion:Surrogate_Mom | |
| 16 February 2008 | |
| I see no problem with deducting the surrogate fee. However, the medical expenses are nondeductible. | |
| 16 February 2008 | |
| Riley2..our main man...are you sure because I thought I just read that only the medical costs are deductible taxea | |
RoyDaleOne (talk|edits) said: | 16 February 2008 |
| If the egg and sperm belong to the taxpayer I would suggest you take the position that the fetus also belongs to them and therefore the medical expenses paid prior to birth were deductible. This position maybe in conflict which the State Statutes covering who is the mother(parent). Medical expenses paid after the fetus becomes a dependent of the taxpayer (when ever that is) are deductible, regardless of when incurred. As for as the rest I don't know. | |
| 16 February 2008 | |
| From RIA, FOIA documents - IRS Info 2004-0187
A snip states: A surrogate mother is not the taxpayer or the taxpayer= s (sic) spouse, and typically is not the type of relative listed in § 152(a). The surrogate mother usually is neither a member of the taxpayer's household for the entire taxable year, nor receives over half her support from the taxpayer for that year, and thus does not qualify as a non-relative dependent. Nor is an unborn child a dependent. Cassman v. United States, 31 Fed. Cl. 121 (1994). Thus, medical expenses paid for a surrogate mother and her unborn child generally would not qualify for deduction under § 213(a). | |
RoyDaleOne (talk|edits) said: | 16 February 2008 |
| Pub 502
ADOPTED CHILD. A legally adopted child is treated as your own child. This child includes a child lawfully placed with you for legal adoption. You can include medical expenses that you paid for a child before adoption, if the child qualified as your dependent when the medical services were provided or when the expenses were paid. If you pay back an adoption agency or other persons for medical expenses they paid under an agreement with you, you are treated as having paid those expenses provided you clearly substantiate that the payment is directly attributable to the medical care of the child. But if you pay the agency or other person for medical care that was provided and paid for before adoption negotiations began, you cannot include them as medical expenses.
TIP! You may be able to take a credit for other expenses related to
an adoption. See the INSTRUCTIONS FOR FORM 8839, for more
information.
| |
| 21 February 2008 | |
| Thank you for your help. It seems like a thin line no matter what position you would take.
Thanks again. | |
