Gestational Surrogacy

Forum|Forum|5 years ago
February 15, 2021
6 replies
33 views

Hi All. I was curious as to whether anyone has dealt with Gestational Surrogacy in the past before? Can anyone point me in the right direction or have any insight they might share.

I get conflicting info as to taxability. I think it is but.....

Thanks!!

ProSeries Professional

This topic has been closed for replies.

T

TaxGuyBill

Can you clarify what exactly you are looking for?

Are you asking how the payments a person receives for carrying someone's baby should be treated for tax purposes? Or are you looking at some other aspect of it?

G

garman22

Author

Intuit Community Champion

Thanks @TaxGuyBill

I guess I was just asking for others thoughts on taxability. I read that some tried "gift" approach and the courts siding with IRS or others trying "pain and suffering" using and IRC code which didnt fly either.

I have not contacted potential client as of yet....just trying to gather my thoughts on the subject.

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TaxGuyBill

It has been a while since I looked into it, but money paid to the surrogate is almost definitely taxable.

Whether or not it is a "business" on Schedule C and subject to SE tax or not is the bigger question. I suspect that if it is just a one-time thing, it would usually be "other income" (not subject to SE tax).

IRonMaN

Level 15

This was talked about a few times in the old forum. But this is the new forum and that old stuff is either gone or just can’t be found through the search function.

Slava Ukraini!

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garman22

Author

Intuit Community Champion

Even the new forum is hard to get around. They've made this place harder with more bugs than the original. I feel for the current moderators........sinking ship and all.

Thankfully we can address most problems here rather than relying on CSR.

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