For nearly a decade, there’s been uncertainty as to how bankruptcy deductions, particularly administrative expense deductions, could be claimed.1 The original position of the Internal Revenue Service that paid administrative expense deductions could not be deducted “above the line” and could only be deducted as miscellaneous itemized deductions to the extent the payments exceed two percent of the adjusted gross income of the bankruptcy estate has now given way to the precisely opposite position.2
Harl, Neil E.
"How Are Bankruptcy Estate Deductions Claimed?,"
Agricultural Law Digest: Vol. 18
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol18/iss16/1