Aggregated News
The U.S. Tax Court rejected a California woman’s attempt to avoid taxes on the $20,000 she received when she donated her eggs for use by infertile couples.
The money Nichelle Perez received was compensation, not damages, Judge Mark Holmes ruled in an opinion released Thursday in Washington. The court said it was the first ruling on taxation of egg donations.
“We completely believe Perez’s utterly sincere and credible testimony that the series of medical procedures that culminated in the retrieval of her eggs was painful and dangerous to her present and future health,” Holmes wrote. “But what matters is that she voluntarily signed a contract to be paid to endure them.”
In 2009, according to court filings, Perez twice donated eggs through the Donor Source International LLC, each time receiving $10,000 after a months-long process that included injections and medical exams.
She didn’t report the income on her tax return and received a notice from the Internal Revenue Service. The U.S. tax agency acted after receiving an informational return from the Donor Source saying that Perez...