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.....
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.
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).
Thank you my friend. Thats what my reading has brought me to as well. I also believe in taxability.
I did also see the SE debate as well. I side with you as well in that as long as its a one off, we tax fed/state rates and call it a day.
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.