Tax treatment of eggs and sperms?

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)

Excerpt:

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….).

Leave a Reply

Your email address will not be published. Required fields are marked *

Connect with Facebook

This site uses Akismet to reduce spam. Learn how your comment data is processed.