Paul and Hannah,who Are Married and File a Joint Return,are

question 39

Essay

Paul and Hannah,who are married and file a joint return,are in the process of adopting a child who is born in December 2015.The child,a son,comes to live with them a week after his birth on December 12.The adoption is not finalized until February of 2016.What tax issues are present in this situation?

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Definitions:

Reasonable Value

An estimation of the fair or appropriate worth of goods, services, or property, taking into consideration factors such as market conditions and the necessity of the item.

Specific Performance

A legal remedy in which a court requires a party to fulfill the exact terms of a contract, rather than paying damages for breach.

Willful Misconduct

Intentional or deliberate wrongdoing or reckless behavior by an individual, typically leading to harm or breach of contractual obligations.

Excludes Liability

A legal term that refers to clauses within contracts that attempt to limit or exclude one's responsibility for certain types of damages or losses.