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failed to establish that he was not an active participant within
the meaning of section 219(g) during the year in issue.
Petitioner's IRA contribution deduction is subject to the
limitations provided in section 219(g). We do not agree with
respondent that petitioner's deduction is necessarily disallowed
in full. Section 1.219-1(b)(2), Income Tax Regs., provides that
no deduction is allowable under section 219(a) to an individual
if such individual is an active participant in any of the plans
listed therein. Clearly, section 1.219-1(b)(2), Income Tax
Regs.,4 is not consistent with the current version of section
219(g) to the extent that the latter allows a deduction to an
unmarried individual who is an active participant in a qualified
plan and who has adjusted gross income of less than $35,000. If
petitioner’s adjusted gross income for 1993 is less than $35,000,
he is entitled to a deduction under section 219 of $2,000 less
the amount disallowed by application of section 219(g), to be
calculated in the Rule 155 computation.
Itemized Deductions
Petitioner contends that he is entitled to itemized
deductions for the year in issue. Petitioner contends that he
made charitable contributions in the amount of $300 and that he
incurred unreimbursed employee expenses in the amount of $1,050.
4 Sec. 1.219-1(b)(2), Income Tax Regs., was published in 1980
prior to the enactment in 1986 of sec. 219(g), allowing a
deduction to active participants in certain circumstances.
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