Sam Adams is a CPA, who is an aspiring actor. In 2011, his adjusted gross income (before any deductions for performing arts expenses) was $42,000 and…
Sam Adams is a CPA, who is an aspiring actor. In 2011, his adjusted gross income(before any deductions for performing arts expenses) was $42,000 and was fromthe following sources: CPA practice $30,000 Acting jobs (4 employers) 12,000 Expenses associated with his acting career were $9,000. Sam deducted these expense under section 162 and classified them as deduction for AGI under section 62 (a)(2)(B). The IRS audited the return and stated that the expenses are not eligible for treatment under section 62(a)(2)(B) and should be classified as miscellaneous itemized deductions (subject to the 2%-of-AGI […]
