Summary
In the Fleischli v. Commr. case, in 2000, the petitioner had a net profit of more than $16,000 from the practice of law. The petitioner also earned $13,435 from acting activities and had acting-related expenses of $17,878 for 2000. A qualified performing artist may deduct from gross income employee business expenses related to his or her work as a performing artist if, inter alia, the individual has adjusted gross income of not more than $16,000. The petitioner contends that adjusted gross income in Section 62(b)(1)(C) includes only adjusted gross income from the performance of services as a performing artist. The Tax Court held that the term "adjusted gross income" in Section 62(b)(1)(C) means the same as adjusted gross income in Section 62(a) and, thus, is computed based on a taxpayer's gross income from all sources.
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Extract
Jack A. Fleischli, A.K.A. Jack Forbes, Petitioner V. Commissioner of Internal Revenue, Respondent
Docket No. 5766-03. Filed July 14, 2004.
In 2000, P had a net profit of more than $16,000 from the practice of law. P also earned $13,435 from acting activities and had acting-related expenses of $17,878 for 2000. A "qualified performing artist" may deduct from gross income employee business expenses related to his or her work as a performing artist if, inter alia, the individual has adjusted gross income (before deducting those business expenses) of not more than $16,000. Sec. 62(a)(2...See the full content of this document
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