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We hear a lot about income taxes, but most transfer pricing people can never predict just exactly how much income-related taxes they're spending money. We're taxed by both our federal government and our state. Since the federal government takes the lion's share, I'll look closely at its taxes.

Regarding egg donors and sperm donors there was an IRS PLR, private letter ruling, saying it's deductible for fogeys as a medical expenditure. Since infertility is a medical condition, helping along her pregnancy could be construed as medical management.

People hate paying taxes. Tax avoidance strategies are entirely legal and could be taken advantage of. Tax evasion, however, isn't. Make sure you know where the fine lines are.