5
that the investment of the distribution in a house with a 30-year
mortgage is akin to a retirement account, and therefore, tax free
treatment of the distribution comports with the Congressional
intent underlying the tax treatment of retirement plans. Cf.
Harris v. Commissioner, T.C. Memo. 1994-22 (which is contrary to
petitioner's argument). Petitioner further argues that the
distribution was made out of necessity, due to petitioners'
inability to sell their house, and as such, literal application
of the Internal Revenue Code is inappropriate.
While we sympathize with petitioners, we are not at liberty
to create exceptions to the Internal Revenue Code. It is a well-
established principle that "exemptions from taxation are not to
be implied; they must be unambiguously proved." United States v.
Wells Fargo Bank, 485 U.S. 351, 354 (1988).
To reflect the foregoing,
Decision will be entered
for respondent.
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