1099-misc Human Egg Donor, What kind of business and what is deductable

Human egg donors receive a 1099-misc for income tax purposes,

Are these eggs being "farmed" for human reproduction so is this business a farming business or scientific business ?

Due to the dangers, Is the hosts body a depreciable asset.

Basis is the number of years they can produce eggs for this purpose i.e., donation for payment ( 18 yo - 30 yo ) and the estimated value of the person, Most are required to be college students and highly educated. Most are doing this since they are in severe financial straights. A fair value for one such person could be over $1,000,000 depending on the gene pool that they are part of.

Donors typically are 18 to early-30s, when women are most fertile and eggs are healthiest. They must pass medical and psychological tests before brokers and clinics shop their information among prospective parents.

Donating eggs is time-consuming, uncomfortable, and potentially risky process.

Oocytes are usually donated for reproductive purposes, not for research. According to the Centers for Disease Control and Prevention, donor eggs were used in

13,183 (11.4 percent) of the 115,392 procedures involving assisted reproductive technology that were started in the United States in 2002. Women are routinely paid $4,000 to $5,000 per cycle and in some cases considerably more

Protocols for stimulating the development of multiple ovarian follicles typically involve daily subcutaneous hormone injections over a period of 7 to 10 days

The ethics committee of the American Society for Reproductive Medicine cites an estimate that egg donors spend "56 hours in the medical setting, undergoing interviews, counseling, and medical procedures related to the process

references

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Reply to
Salto Jorge
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"Salto Jorge" wrote

I personally don't see it as a business, so it would fall to Other Income - Line 21.

If this is a real issue of concern, ask the IRS for a Private Letter Ruling (PLR).

No. Not a snowball's chance in........audit history.

Snip remainder of non-questions.

Any medical related expenses would fall to Schedule A.

Reply to
Paul Thomas, CPA

"Salto Jorge" wrote

After discussing blood plasma donations here not long ago, I think the first question that needs to be answered is whether the donor "regularly and continuously" (IRS wording) participates in this activity. If not, then she cannot count the 1099-misc income as self-employed business income, and so issues like depreciation etc. are moot.

I would be asking how many times in the past the donor has done this; does she intend to keep doing it; how much time during the year did she give to this activity; was this time spread out and in what way; does she participate in other activities that involve selling her body for time, like blood plasma sales or menial labor. That is, is the donor scrambling to make a living any way she can with her body, and has she done so for years or plans on continuing to do so?

Reply to
Elle

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