It may be a little early in the year, but this has to qualify for one of the weirdest stories of the year: Egg Donor IRS Challenge Offers Future Sperm Tax Certainty (Bloomberg)
The California woman and the government are arguing over whether egg donation is an act of commerce that should be taxed. A U.S. Tax Court judge will determine the outcome in what is seen as a precedent-setting case that could provide certainty for people who donate eggs, sperm and blood plasma.
“This is in no way considered self-employment since I did not sell a product or service,” she wrote in a 2012 court filing. “I feel like I am being penalized for doing something good for another person.”
Also, Perez could pay lower tax rates on the income if it were treated as long-term capital gains. Eggs could be considered property she had possessed since birth, in which case the sale could be seen as a long-term capital gain.
If they’re not considered property until removed from her body, the eggs could be seen as generating short-term gains.
I wonder how The Big Bang Theory cast handled it (pilot episode….).