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June 1, 2019
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Is a gestational surrogate agency tax deductible?

  • June 1, 2019
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The link below answers most of my questions. The answer in the link left out any opinion on whether the surrogate agency would be tax deductible. We are a married man and woman that the doctors have told in order to have a baby, we would need to use a gestational surrogate. We did not need a egg or sperm doner. We just needed to try using a gestational surrogate. It appears that all of our medical expenses and lawyer/court fees are tax deductible. Any info would be a great help. Thank You.

https://ttlc.intuit.com/questions/2790746-we-are-a-gay-couple-and-thus-unable-to-conceive-so-we-are-having-twins-through-surrogacy-can-we-deduct-all-of-our-surrogacy-expenses
Best answer by bwa

You can only deduct the costs of you, your spouse and your dependents. As the surrogate and/or egg donor and unborn child are usually none of those, any expenses for the surrogate would not be deductible. Your medical expenses, however, including any testing of you, medical treatments for you, etc. would be deductible.

The IRS, in a letter of December 31, 2002 explained this position. You can read it here:  http://www.irs.gov/pub/irs-wd/02-0291.pdf


1 reply

bwaAnswer
June 1, 2019

You can only deduct the costs of you, your spouse and your dependents. As the surrogate and/or egg donor and unborn child are usually none of those, any expenses for the surrogate would not be deductible. Your medical expenses, however, including any testing of you, medical treatments for you, etc. would be deductible.

The IRS, in a letter of December 31, 2002 explained this position. You can read it here:  http://www.irs.gov/pub/irs-wd/02-0291.pdf


June 1, 2019
is your answer the same given this 2003 ruling? <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-wd/0318017.pdf">https://www.irs.gov/pub/irs-wd/0318017.pdf</a>