There is much confusion about what constitutes foreign earned income with respect to the residency location, the location where the work or service is performed, and the source of the salary or fee pay. Foreign residency or extended periods abroad for the tax payer is often a qualification to avoid double taxation.

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B) Interest earned, except for paid, during a bond year, must be accrued at the end of the bond year and reported as taxable income for the calendar year in that this bond year ends.

Regarding egg donors and sperm donors there was an IRS PLR, private letter ruling, saying prior to deductible for fogeys as a medical expense. Since infertility is a medical condition, helping along having a baby could be construed as medical management.

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