Adoption Credit. Brad and Valerie decided to adopt a child
and contacted an adoption agency in August 2018. After extensive interviews and
other requirements (such as financia l status, etc.), Brad and Valerie were
approved as eligible parents to adopt a child. The agency indicated chat it
might rake up to two years to find a proper march . In March 2019, the adoption
became final, and Brad and Valerie adopted an infant daug hter (not a special
needs child). Below is a list of expenses chat they incurred:
Brad and Valerie’s AGI in 2018 was $70,000, and in 2019 was
$90,000.
a. Compute Brad and Valerie’s qualified adoption expenses
for each year.
b. Compute Brad and Valerie’s adoption credit. In which
year(s) may the credit be taken?
c. Would your answer to Part b change if the adopted child
was a special needs child and if a grant covered all adoption cost except for
legal fees?
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