My Client was an egg donor. She rec'd a 1099-NEC. How shall I take a deduction for mileage related to her clinic trips?

[abctax55]

An oldie, but a goodie:

http://www.taxalmanac.org/index.php/Discussion_Taxability_of__Donating__an_Egg_Cell_(Ovum).html

[taxes96786]

How is this a donation if she got paid to do it? The income goes on 1040 line 21 as a one-time payment. The mileage is a donation reported the normal way.

[abctax55]

She 'donated' to a surrogate. 

[TaxGuyBill]

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@abctax55 wrote:

An oldie, but a goodie:

http://www.taxalmanac.org/index.php/Discussion_Taxability_of__Donating__an_Egg_Cell_(Ovum).html

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That interesting; I wouldn't have though about the possibility of it being a capital asset.

As a side note, whenever I read anything from the deceased TaxAlmanac, it just reminds me of how Intuit doesn't give 💩 about tax professionals.

[PATAX]

I don't have any clients with chicken farms. A little bit rare in these parts.

[itonewbie]

Love TaxAlmanac!

Figured that's how the IRS would look at it, all based on whether these "donations" constitute §162 ToB from the perspectives of regularity, continuity, and profit motive (Commissioner v. Groetzinger, 480 U.S. 23 (1987)).

It's not surprising once you look at the legalese on these plasma centers' websites as well, which their attorneys must have pored over, they coin money they offer in exchange for "donations" as "rewards" that are "earned" with each donation.  Just to be consistent with that position, they even issue 1099-NEC's.

On these centers' websites, based on what I could tell from a cursory look, there is no reference to them "buying" plasma (in any sense at all) and there doesn't seem to be any correlation between the amount of "rewards" and the amount of plasma that could be "donated" due to various factors.  One would also surmise that there is a time element in these "rewards" because the process could apparently be quite time consuming.

The amounts reported on these 1099-NEC's would, no doubt, give the IRS an early indication of whether there is a pattern of regularity and continuity.

[itonewbie]

Similarly for egg donations, there doesn't seem to be any correlation between the quantity and quality of the eggs being "donated" and the compensation that is paid.  Here are excerpts from two centers about their compensation or rewards for donors [emphasis added] -

Egg donor compensation

Along with the appreciation and gratitude from your recipients, our egg donors are given a financial compensation for fulfilling their donor responsibilities. The egg donation pay ranges from $7,500 and up. First time donors begin at $7,500 with increased compensation for subsequent cycles. The egg donation compensation rewards you for your time, effort, and dedication.

When are Egg Donors Compensated?

Egg donor payments are broken into two disbursements. The first payment made to an egg donor is $750 and is paid upon the start of injectable medications. The balance of an egg donor’s compensation is paid after the completion of the egg retrieval procedure regardless of the number of eggs retrieved.

[dkh]

This was an informative post.   Thanks to all of you.    I love learning new things. 

[abctax55]

I made some good contacts, even friends, over on TA.  There were some brilliant tax minds posting over there, in it's heyday.  I still do not understand why it was closed down by Intuit.

[itonewbie]

Compared to TaxAlmanac, everything here (I mean everything, down to the point system) looks like kiddie park.

[Ohhhhh]

Yes, the most recent thread at Tax Almanac was dated 2008.

[BobKamman]

I don't come here to chitchat about old times or review secondary sources.  When there is a Tax Court decision on point, I suggest you follow it.  

https://wilsontaxlaw.com/newsresources/interesting-tax-opinions/nichelle-g-perez-petitioner-v-commis... 

Especially when it's written by the magnificent Judge Holmes.  

[BobKamman]

The Tax Court's DAWSON website is dysfunctional, but if you want a mile-long link to a more readable copy, here it is: 

Well, apparently that didn't work.  Go to ustaxcourt.gov and search opinions for nichelle perez

[Ohhhhh]

"Donation" was to a CLINIC. They pay.

"Egg Donor" is the terminology.

[abctax55]

@Ohhhhh 

Yeah.... I think we all understood that (except one 😉

[qbteachmt]

"How is this a donation if she got paid to do it?"

""Donation" was to a CLINIC. They pay.

"Egg Donor" is the terminology."

The point being, in the US you cannot buy/sell organs. That's why kidneys also are donated and not sold to the highest bidder.

You can be paid for costs, inconvenience, etc. Not for the egg or organ.

At least, that's the plan.

[qbteachmt]

"Egg Donor" is the terminology."

The point being, in the US you cannot buy/sell organs. That's why kidneys also are donated and not sold to the highest bidder.

You can be paid for costs, inconvenience, etc. Not for the egg or organ.

At least, that's the plan.