[Anonymous]

Okay I am wokring some MC’s in Wiley and it is indicated that medical expenses qualify for adopting a child and legal and agency fees do not. But in the Becker text it states that medical expenses do not qualify and legal and agency fees do qualify. Have I been stydying too much??? Some one please splain to me:)

[Anonymous]

Per the IRS website:

Adopted child. A legally adopted child is treated as your own child. This child includes a child lawfully placed with you for legal adoption.

You can include medical expenses that you paid for a child before adoption if the child qualified as your dependent when the medical services were provided or when the expenses were paid.

If you pay back an adoption agency or other persons for medical expenses they paid under an agreement with you, you are treated as having paid those expenses provided you clearly substantiate that the payment is directly attributable to the medical care of the child.

But if you pay the agency or other person for medical care that was provided and paid for before adoption negotiations began, you cannot include them as medical expenses.

[Anonymous]

Thanks Kricket. I went back and re-read the question in the Wiley book. Tricky question the way they asked it.

Some sort of life. Reading the IRC code on a Saturday night!!

How's your studying going? I am trying to prepare for REG (again on 4/21) and FAR at the end of May. I am about to collapse over my books.

[Anonymous]

I've been sitting here working FAR problems since 10am. I've got to get through these so I can start on REG Monday and have a week to review for both exams. And you are right there is nothing more exciting than reading IRC Code on a Saturday Night! Woo Hoo the exciting life of a CPA candidate!

[Author]

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