Adjusted Gross Income:
i. Code: 62(a)
ii. Reg: 1.62-1T(a); 1.162-17(a)-(c)
iii. 62: AGI is defined as GI minus the deductions specified by 62.
iv. AGI deductions are primarily, but not exclusively, business or profit-related deductions that are intended to yield the net amount available to a taxpayer to pay for food, housing and other costs of living.
v. note: under 62(a)(1), non-employees may deduct all business expenses other than those arising under 211 – 219, on the other hand, 62(a)(2) allows employees only to deduct business expenses that have been reimbursed by their employer. Moral: it is much better to be an employer than an employee.
1. aside: 62(a)(2)(B); applies to performing artist who may deduct any 162 business expense in arriving at AGI
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