DAR File No. 31466

Tax Commission, Auditing

R865-9I-48

Adoption Expenses Deduction Pursuant to Utah Code Ann. Section 59-10-114

NOTICE OF PROPOSED RULE

DAR File No.: 31466
Filed: 05/20/2008, 03:15
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The section is removed because statutory changes made by H.B. 369 (2008). (DAR NOTE: H.B. 369 (2008) is found at Chapter 389, Laws of Utah 2008, and was effective 05/05/2008.)

Summary of the rule or change:

Section is removed because the deduction for adoption expenses was removed by H.B. 369 (2008).

State statutory or constitutional authorization for this rule:

Section 59-10-114

Anticipated cost or savings to:

the state budget:

None--Any revenue impacts were taken into account by H.B. 369 (2008).

local governments:

None--Any revenue impacts were taken into account by H.B. 369 (2008).

small businesses and persons other than businesses:

None--Any revenue impacts were taken into account by H.B. 369 (2008).

Compliance costs for affected persons:

Taxpayers will no longer be able to take a state tax deduction for adoption expenses.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no anticipated impacts. D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2008

This rule may become effective on:

10/13/2008

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-9I. Income Tax.

[R865-9I-48. Adoption Expenses Deduction Pursuant to Utah Code Ann. Section 59-10-114.

A. For purposes of the deduction for adoption expenses under Section 59-10-114, adoption expenses include:

1. medical expenses associated with prenatal care, childbirth, and neonatal care;

2. fees paid to reimburse the state under Section 35A-3-308;

3. fees paid to an attorney or placement service for arranging the adoption;

4. all actual travel costs incurred exclusively for the purpose of completing adoption arrangements; and

5. living expenses of the birth mother if paid by the adoptive parents as part of their adoption expenses and if in conformance with Section 76-7-203.

B. Adoption expenses do not include:

1. food, clothing, or other routine expenses associated with the child's care, other than necessary medical expenses, that arise before the adoption is final;

2. foster care expenses incurred prior to the application for adoption; or

3. legal expenses arising from custody actions subsequent to the finalization of the adoption.

C. Qualified adoption expenses may be deducted regardless of whether the adoption process is terminated.

D. The income tax deduction under Section 59-10-114 applies to the actual qualified adoption expenses of the birth mother, the legal guardian of the birth mother or another individual acting on behalf of the birth mother, or the adoptive parents.

E. Reimbursed adoption expenses for which a taxpayer has taken the state income tax deduction, must be added to the taxpayer's gross income in the tax year in which the expenses are reimbursed.]

 

KEY: historic preservation, income tax, tax returns, enterprise zones

Date of Enactment or Last Substantive Amendment: [March 14], 2008

Notice of Continuation: March 20, 2007

Authorizing, and Implemented or Interpreted Law: 59-10-114