I have been researching the new adoption tax law
and would like to know how it applies to our situation. We went through the complete international adoption process and went to bring home our daughter from China, however, (long story) we did not bring her home. Adoption cost with travel about $15,000.00 in the two year process (2005-2007). Upon our return
from China, sadly without our daughter, yet with a desire to add to our family we began and completed an international adoption from Guatemala. A two Year Process beginning in July 2007 and bringing her home in Aug. 2009. Total Costs aroung $35,000.00. So our tax man took the tax dedection for that year in which we didn't really need to due to the fact we sold our home and and received and incredible $87,000.00 deduction
from that sale. So we had no tax liability
in 2009. However, this year because we no longer own a home, we had a huge tax liabilty and owe Fed. & State
a bit over $10,000. I am hoping that the adoption law allow us
to carry over that deduction from 2009 to 2010 because we did not have a liability
in 2009 and the cost of our adoption was so great. Please advice! Mel in CA.