James and Colleen Have Reached an Agreement with Kelsey in Which

question 1918

Essay

James and Colleen have reached an agreement with Kelsey in which she will give birth to a baby and then give the baby to James and Colleen. In return, James and Colleen will pay Kelsey $40,000 cash and pay for her medical expenses. What tax issues should Kelsey consider?

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Definitions:

Teratogen Exposure

Contact with substances that can cause birth defects or developmental abnormalities in a fetus during pregnancy.

Genetic History

The study and documentation of an individual's or family's inherited traits, conditions, and diseases to assess health risks.

Delayed Development

A condition where a child does not reach developmental milestones within the typical age range, possibly indicating underlying health or learning issues.

Posterior Fontanelle

The soft spot at the back of a newborn's skull where the bones have not yet fully joined, allowing for brain growth and skull expansion.