I am in the process of an international adoption. I do not qualify for the federal adoption credit because of my families income. However I am having a difficult time discovering whether or not I can treat my adoption expenses as a deduction. If they are deductible can I deduct my 2011 costs on my 2011 tax filing or do I have to deduct my 2011 expenses the year the adoption is finalized?
The IRS documentation I have found is not clear on whether or not my expenses are deductible (in the case that I am unable to take advantage of the federal credit).