DocketNumber: No. 5766-03
Citation Numbers: 123 T.C. 59, 2004 U.S. Tax Ct. LEXIS 28, 123 T.C. No. 3
Judges: "Colvin, John O."
Filed Date: 7/14/2004
Status: Precedential
Modified Date: 10/19/2024
*28 Court determined that, for purposes of
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.
that "adjusted gross income" in
includes only adjusted gross income from the performance of
services as a performing artist.
Held: The term "adjusted gross income" in sec.
in
taxpayer's gross income from all sources.
*59 COLVIN, Judge: Respondent determined a deficiency in petitioner's 2000 Federal income tax of $5,580 and an accuracy-related penalty under
After concessions, the issue for decision is whether, for purposes of
*30
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. Petitioner resided in California when the petition was filed.
*60 Petitioner was a self-employed practicing attorney in 2000. He earned a net profit of more than $16,000 from the practice of law in 2000.
Petitioner also worked as an actor in 2000. He used the professional name "Jack Forbes". In that year, he earned $13,435 from acting and had acting-related expenses of $17,878. He reported a net loss from acting on a Schedule C, Profit or Loss From Business, attached to his 2000 return.
During an examination of petitioner's 1999 return, respondent allowed petitioner to treat his acting expenses as adjustments to gross income for 1999.
Respondent determined that petitioner had adjusted gross income of more than $16,000 in 2000 and that, as a result, petitioner may not deduct his acting expenses of $17,878 as adjustments to gross income under section
1.
In computing adjusted gross income, a qualified performing artist may deduct from gross income employee business expenses incurred in connection with his or her performance of services in the performing arts as an employee.
*61 2.
Petitioner contends that the term "adjusted gross income" in
*33
Petitioner contends that respondent is estopped from contending that petitioner is not a qualified performing*34 artist *62 for 2000 because respondent determined that petitioner was a qualified performing artist in 1999. We disagree. The Commissioner is not bound in any year to allow a deduction permitted for another year. See
For purposes of
B. Whether Application of Petitioner's Constitutional Rights of Due Process
Petitioner argues that the $ 16,000 ceiling in
A tax statute which provides different treatment for different classes of persons generally does not violate the
Finally, petitioner contends that we must carefully consider whether taxes imposed on performing artists, which petitioner views as a "politically impotent class", are discriminatory. See
We conclude that application of
To reflect concessions and the foregoing,
Decision will be entered under
1. Section references are to the Internal Revenue Code in effect for the applicable year. Rule references are to the Tax Court Rules of Practice and Procedure.↩
2. We need not decide whether the burden of proof shifts to respondent under
3. Respondent concedes that these expenses are unreimbursed employee expenses for 2000. ↩
4. (a) General Rule.--For purposes of this subtitle, the term "adjusted gross income" means, in the case of an individual, gross income minus the following deductions: * * * * * * * (2) Certain trade and business deductions of employees.-- * * * * * * * (B) Certain expenses of performing artists.--The deductions allowed by
United States v. Maryland Savings-Share Ins. Corp. , 91 S. Ct. 16 ( 1970 )
United States v. Gonzales , 117 S. Ct. 1032 ( 1997 )
Ronald L. Lerch and Dalene Lerch v. Commissioner of ... , 877 F.2d 624 ( 1989 )
Carmichael v. Southern Coal & Coke Co. , 57 S. Ct. 868 ( 1937 )
Alexis M. Hawkins and Rosemary K. Hawkins v. Commissioner ... , 713 F.2d 347 ( 1983 )
William G. Barter, Wanda B. Barter, Ralph D. Blair and ... , 550 F.2d 1239 ( 1977 )
Francisco, John A. v. Cmsnr IRS , 370 F.3d 1228 ( 2004 )
Barclay & Co. v. Edwards , 45 S. Ct. 135 ( 1925 )
Naomi Jablonski Cash v. Commissioner of Internal Revenue , 580 F.2d 152 ( 1978 )
iraola-cia-sa-plaintiff-counter-defendant-appellant-cross-appellee-v , 232 F.3d 854 ( 2000 )
salt-river-pima-maricopa-indian-community-v-yavapai-county-a-political , 50 F.3d 739 ( 1995 )
united-states-of-america-major-daniel-m-rowland-individually-and-as-next , 728 F.2d 628 ( 1984 )