Deducting adoption expenses incurred for an adoption that may not happen


J

Jim

I've tirelessly searched for the answer to my question but to
no avail. I've found many, many similar questions but nothing
that answers mine exactly.

Scenario:
My wife and I started an open adoption process early 2004 in
which we incurred ~$7000.00 in fees. As of December 2005, we
still had not been selected and found out my wife was pregnant.
We put our adoption wait on hold, which we can do for up to
two years without having to pay 100% of the costs again.

Question:
Even though we have not adopted a child and may choose not to
continue the process, can we still deduct the expenses
incurred for the purpose and intent of adopting?

Thank you very much for your help.
Jim

----------
Moderator:
Congratulations on the pending birth of your child. I wish
you a healthy, beautiful baby girl. Girls are easier to
raise than are boys. Also daughters will love you forever
or until they turn 13 whichever comes first.
 
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H

Harlan Lunsford

Jim said:
I've tirelessly searched for the answer to my question but to
no avail. I've found many, many similar questions but nothing
that answers mine exactly.

Scenario:
My wife and I started an open adoption process early 2004 in
which we incurred ~$7000.00 in fees. As of December 2005, we
still had not been selected and found out my wife was pregnant.
We put our adoption wait on hold, which we can do for up to
two years without having to pay 100% of the costs again.

Question:
Even though we have not adopted a child and may choose not to
continue the process, can we still deduct the expenses
incurred for the purpose and intent of adopting?
There must be an eligible child for to take the credit. In
fact one must provide a taxpayer identifying number for said
adoptee.

ChEAr$,
Harlan Lunsford, EA n LA
 
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B

Brew1

Look at the instructions for form 8839 at irs.gov

You can take an adoption credit for expenses related to the
"failed" adoption of a child that is a U.S. citizen. If
your "deposit" is still valid, then you cannot take the
credit (yet).
 
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H

Harlan Lunsford

Brew1 said:
Look at the instructions for form 8839 at irs.gov

You can take an adoption credit for expenses related to the
"failed" adoption of a child that is a U.S. citizen. If
your "deposit" is still valid, then you cannot take the
credit (yet).
ah yes, but there still must BE a child, as opposed to a
"gleam in a father's eye."

ChEAr$,
Harlan Lunsford, EA n LA
 
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B

Brew1

Harlan said:
Brew1 wrote:
ah yes, but there still must BE a child, as opposed to a
"gleam in a father's eye."
right you are Harlan--expenses must relate to a named child.
 
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D

Dick Adams

Harlan said:
Brew1 wrote:
ah yes, but there still must BE a child, as opposed to a
"gleam in a father's eye."
As you all will recall, one of ehe most massive genocides in
human history occurred when the IRS required an SSN/TIN for
dependents. It must have been a great year for auditing
prior year unmarried heads of households with four dependent
children who then filed single with no dependents!

Just think of all the adoption credits some felon could sell.

Dick
 
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A

Arthur Kamlet

Dick Adams said:
Harlan Lunsford wrote:
As you all will recall, one of ehe most massive genocides in
human history occurred when the IRS required an SSN/TIN for
dependents. It must have been a great year for auditing
prior year unmarried heads of households with four dependent
children who then filed single with no dependents!
Nah, no killings of innocent babes.

What you fail to appreciate is the number of wizards living
in this muggle world and have greatly underestimated the
apparently vast number of shape shifters. And in their dog
or horse or unicorn form, require no tax id numbers.

And if none of this makes sense, where have you been lately?

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 
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H

Harlan Lunsford

Arthur said:
Nah, no killings of innocent babes.

What you fail to appreciate is the number of wizards living
in this muggle world and have greatly underestimated the
apparently vast number of shape shifters. And in their dog
or horse or unicorn form, require no tax id numbers.

And if none of this makes sense, where have you been lately?
Somehow the above doesn't seem any different from some of the
junk emails I sometimes get. "muggle"? "shape shifters"?

C$,
HL
 
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A

Arthur Kamlet

Harlan Lunsford said:
Arthur Kamlet wrote:
Somehow the above doesn't seem any different from some of the
junk emails I sometimes get. "muggle"? "shape shifters"?
Sad to see that,. like real muggles, you do not even know you
are one :^)

So out of curiosity, who is currently the richest best selling
author, whose books have been made into sold-out movies
attended by little girls dressed as witches and little boys as
wizards, each little boy carrying a magic wand and each
adorned with a Sharpie-drawn lightening bolt right in the
middle of their forehead?

Harlan: There's more to life than taxes!!!

Besides Crown Royal, that is.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 
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G

Gil Faver

Harlan Lunsford said:
Jim wrote:
There must be an eligible child for to take the credit. In
fact one must provide a taxpayer identifying number for said
adoptee.
there must be an eligible child, but the TIN in not
required, if not available.
 
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G

Gil Faver

Brew1 said:
Look at the instructions for form 8839 at irs.gov

You can take an adoption credit for expenses related to the
"failed" adoption of a child that is a U.S. citizen. If
your "deposit" is still valid, then you cannot take the
credit (yet).
I don't read the instructions as requiring that a failed
adoption must pertain to a US citizen prospective adoptee to
allow the deduction.
 
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G

Gil Faver

right you are Harlan--expenses must relate to a named child.
I don't believe this is true. Instructions say that if you
cannot fill out some of the data, fill out the info on page
2 for the adoption agency.
 
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