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

question 101

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 2013.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 2014.What tax issues are present in this situation?

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Definitions:

Lumber

Timber that has been processed into beams and planks, a stage in the preparation for use as building material or other purposes.

Minor

An individual under the age of legal adulthood, typically under 18, who has limited legal rights and capacities.

Voidable Title

A title to property or goods that can be rendered null and void due to certain conditions, such as fraud or misrepresentation.

Good Faith Purchaser

is a person who buys property without notice of any other party's claim to the title of the property and for a fair value.