- 16 -
Commissioner, T.C. Memo. 1996-50. Accordingly, we hold that the
entire $58,372.50 is includable in petitioners’ 1994 gross
income.
Income From Satisfaction of Mr. Broedel’s Loan Against His
Retirement Account
Respondent argues that petitioners received income in 1994
because of the satisfaction of Mr. Broedel’s outstanding loan
against his NYRS retirement account. Petitioners argue they did
not realize income because the NYRS deducted the loan amount from
Mr. Broedel’s retirement account when it was not repaid.
At the time of his retirement, Mr. Broedel had an
outstanding loan against his retirement funds. Mr. Broedel was
given the option of repaying the loan. Mr. Broedel chose not to
repay the loan, and the NYRS apparently satisfied the loan by
deducting the loan balance from Mr. Broedel’s retirement account
balance. The NYRS issued Mr. Broedel a Form 1099-R for 1994
reflecting a taxable amount of $13,393.54, representing the
outstanding loan balance. Petitioners did not report this amount
on their 1994 tax return. Petitioners did not present testimony
at trial on this issue, and they did not argue this issue on
brief. Petitioners addressed this issue only in their petition
and trial memorandum, in which they claim that the loan amount
was “repaid” because the NYRS deducted the loan amount from Mr.
Broedel’s retirement account.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011