Taxing Parenthood: Federal Tax Law and Collaborative Reproduction

American Journal of Family Law, Vol. 24, No. 3, p. 134, Fall 2010

Suffolk University Law School Research Paper No. 10-51

11 Pages Posted: 14 Sep 2010  

Charles P. Kindregan, Jr.

Suffolk University Law School

Date Written: September 13, 2010

Abstract

This article examines the novel issues dealing with the application of the federal tax code to collaborative reproduction, i.e. assisted reproductive technology involving third parties in the procreative process. Although collaborative reproduction has become a billion dollar business in the United States, the tax issues arising from it has for the most part been obscured from public view. Payment to a collaborator for gametes, embryos and birthing a child for another obviously raise tax issues, but often attempts are made to avoid reporting such payments, especially to surrogate carriers and egg donors. While deductions may be allowed for the costs of collaborative reproduction, the only analogous rulings may be those having to do with blood and human milk. There is a little literature on the subject, but except for a decision of the tax court on deduction of legal and medical payments and the cost of employing a surrogate carrier, there appears to be no practical controlling law. Given the economic reality of transfer of money in the field of reproductive medicine this article may help to focus attention on the subject.

Keywords: Federal taxation, medical deductions, income reporting, collaborative reproduction, assisted reproductive technology, surrogacy, gametes, embryos, payment for gametes, adoption tax credits

Suggested Citation

Kindregan, Jr., Charles P., Taxing Parenthood: Federal Tax Law and Collaborative Reproduction (September 13, 2010). American Journal of Family Law, Vol. 24, No. 3, p. 134, Fall 2010; Suffolk University Law School Research Paper No. 10-51. Available at SSRN: https://ssrn.com/abstract=1676389

Charles P. Kindregan, Jr. (Contact Author)

Suffolk University Law School ( email )

120 Tremont Street
Boston, MA 02108-4977
United States

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