Richard Rubin wrote about the battle to determine the tax treatment of sperm and egg donations in the United States:

• An individual who donated $20,000 worth of eggs feels that she shouldn’t be taxed on the income since she had to undergo injections and medical exams, making the money compensation for her suffering and thus untaxable.
• The tax agency on the other hand points out that the eggs were donated voluntarily and that many people have to go through suffering for their earnings – such as athletes – and they still have to pay taxes.
• It’s possible the donation will be ruled as a “sale of property” that the donor owned since birth, and thus be subjected to the capital gains tax which is lower than the standard income tax.

Read more about the court’s thinking, what legal experts have to say, and more over here.

Source: Bloomberg

Via: Marginal Revolution