P U B L I C L A W 9 9 - 5 1 4 — O C T. 22, 1986
100 S T A T. 2115
which a r e paid or incurred in connection with the administration of the estate or t r u s t and would not h a v e been incurred if the property were not held in such t r u s t or e s t a t e shall be t r e a t e d as allowable in a r r i v i n g a t adjusted gross income." (b) T R E A T M ENT OF TRADE A N D B U S I N E S S DEDUCTIONS O F EMPLOYEES.—
(1) IN GENERAL. — Paragraph (2) of section 62 (defining adj u s t e d gross income) is amended to read a s follows: "(2) CERTAIN TRADE AND BUSINESS DEDUCTIONS OF EMPLOYEES.— "(A) REIMBURSED EXPENSES O F EMPLOYEES.—The deduc-
tions allowed by part VI (section 161 and following) which consist of expenses paid or incurred by the taxpayer, in connection with the performance by h i m of services as a n employee, under a reimbursement or other expense allowance a r r a n g e m e n t with his employer. ' -
"(B)
CERTAIN
EXPENSES
O F PERFORMING
ARTISTS.—The
deductions allowed by section 162 which consist of expenses paid or incurred by a qualified performing a r t i s t in connection with the performances by him of services in the performing a r t s a s a n employee." (2) DEFINITION OF Q U A U F I E D PERFORMING ARTIST.—Section 62
is amended— (A) by striking out " For purposes of t h i s s u b title " and inserting in lieu thereof "(a) GENERAL RULE. — For purposes ^ of this subtitle", and (B) by a d d i n g a t the end thereof the following new subsection: "(b) Q U A U F I E D P E R FOR M I N G A R T I S T. —
"(1) IN GENERAL.—For purposes of subsection (a)(2)(B), the term 'qualified performing a r t i s t ' means, with respect to any taxable year, any individual if— "(A) such individual performed services in the performing a r t s a s a n employee during the taxable year for a t least 2 employers, "(B) the aggregate a m o u n t allowable as a deduction under section 162 in connection with the performance of such services exceeds 10 percent of such individual's gross income a t t r i b u t a b l e to the performance of such services, and "(C) the adjusted gross income of such individual for the (STi k taxable year (determined without regard to subsection (a)(2)(B)) does not exceed $16,000. "(2)
NOMINAL
EMPLOYER
NOT TAKEN
INTO
ACCOUNT.—An
individual shall not be t r e a t e d as performing services in the performing a r t s a s a n employee for any employer during any taxable year unless the a m o u n t received by such individual from such employer for the performance of such services during the taxable year equals or exceeds $200. "(3) SPECIAL RULES FOR MARRIED COUPLES.—
"(A) IN GENERAL.—Except in the case of a h u s b and and wife who lived a part a t all times during the taxable year, if the tax p a y e r is m a r r i e d a t the close of the taxable year, subsection (a)(2)(B) shall apply only if the tax p a y e r and his spouse file a joint r e t u r n for the taxable year. "(B) APPLICATION O F PARAGRAPH (1).—In the case of a
joint r e t u r n —
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