In 2013,Juan and Juanita incur $9,800 in legal and adoption fees directly related to the adoption of an infant son born in a nearby state.Over the next year,they incur another $4,500 of adoption expenses.The adoption becomes final in 2014.Which of the following choices properly reflects the amounts and years in which the adoption expenses credit is available

E)None of these.

Question

In 2013,Juan and Juanita incur $9,800 in legal and adoption fees directly related to the adoption of an infant son born in a nearby state.Over the next year,they incur another $4,500 of adoption expenses.The adoption becomes final in 2014.Which of the following choices properly reflects the amounts and years in which the adoption expenses credit is available
 
E)None of these.

Quizplus · Accepted Answer

For qualifying adoption expenses paid or incurred in a tax year prior to the year when the adoption is finalized,the adoption expenses credit must be claimed in the year following the year the expense is paid.Also,the total amount of the credit cannot exceed $13,190 in 2014.Thus,the adoption expenses credit is $13,190 in 2014.

In 2013,Juan and Juanita Incur $9,800 in Legal and Adoption