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an eligible retirement plan or any other qualified retirement plan.
Apparently what he did was place the $408,623 into a series of
foreign trusts. These actions (despite petitioner's assertions to
the contrary) do not qualify for any tax-free rollover treatment
pursuant to section 402(a)(5) or section 408(d)(3). Accordingly,
we hold that the $408,623 is includable in petitioner's 1990 gross
income as a taxable distribution.
Issue 4. Losses or Deductions From Forced IRS Tax Sale of Personal
Residence
The next issue is whether petitioner is entitled to any losses
or deductions in 1992 as a result of an IRS forced tax sale of his
personal residence. Petitioner claims that he was entitled to such
a deduction or loss because he incurred interest expenses of
$15,096.76, and other costs of $38.60 paid to Herman Heilscher (who
is not described in the record) for the redemption of this
property. Respondent argues that petitioner has failed to submit
evidence entitling him to any such deduction.
We agree with respondent. Deductions are a matter of
legislative grace. New Colonial Ice Co. v. Helvering, 292 U.S.
435, 440 (1934). Because petitioner has failed to produce any
evidence on this issue (such as substantiation of payment
information or any details with regard to the amount, timing, or
purpose of the alleged payments), we sustain respondent's
disallowance of any loss or deduction with regard to the sale of
petitioner's personal residence in 1992.
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