Medical deductions for child born with Surrogate mother

[Possi]

My clients have spent a fortune on in vitro attempts in the last few years, to no avail. Finally, the SP's sister is carrying THEIR baby... TP and SP contributed the fertilized egg, and SisterMomma is carrying the baby for them.

What a miracle, right?!! Happy for them!

I understand that TP and SP medical expenses are deductible, no problem.

Also, I understand that SisterMomma's medical expenses that TP and SP are paying are not deductible for TP and SP. I sure wish someone would tell me I'm wrong, because it is their baby, after all.

Once the baby is born, they can deduct the medical expenses for their baby, including travel to pick the baby up. (TP and SP are in VA; SisterMomma is in GA)

Any discussion?

[mactoolsix]

Here's a post that discusses this problem. Looks like the surrogate must be a qualifying relative to allow the client to take the medical deductions.

AND, The income to the surrogate will be taxable income. Interesting idea about using a 1099 for fees.

http://taxmama.com/forums/f12/medical-deduction-gestational-surrogacy-egg-donation-3329/

Be sure to scroll down to Eva's posting . . .

Mike

[Burke]

Is this an NAEA site? Password and email address required.

[mactoolsix]

Is this an NAEA site? Password and email address required.

No, it is the site of Eva Rosenburg - "Tax Mama" - who runs a class for enrolled agents. She also does syndicated articles for Market Watch and other news papers.

No cost to sign up, no spam.

Mike