Dealing With Tax Problems: Easy As Pie: Difference between revisions

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Regarding egg donors and sperm donors there was an IRS PLR, private letter ruling, saying there isn't any deductible for fogeys transfer pricing as a medical price. Since infertility is a medical condition, helping along her pregnancy could be construed as medical management.

Example: Mary, an American citizen, is single and lives in Bermuda. She earns a salary of $450,000. Part of Mary's income will be subject to U.S. income tax at the 39.6% tax rate.

In 2003 the JGTRRA, or Jobs and Growth Tax Relief Reconciliation Act, was passed, expanding the 10% income tax bracket and accelerating some with the changes passed in the 2001 EGTRRA.

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