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Regarding egg donors and sperm donors there was an IRS PLR, private letter ruling, saying it may be deductible for mothers and fathers as a medical expenditure. Since infertility is a medical condition, helping along having a baby could be construed as medical cure. The increased foreign earned income exclusion, increased tax bracket income levels, and continuation of Bush era lower tax rates are excellent news for most American expats. Tax rules for expats are lanciao sophisticated.
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