Peter Spuler, Jr. - Page 7

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          IRA Distribution From Mr. Spuler                                            
               Generally, any amount paid or distributed to a taxpayer from           
          an IRA is included in gross income in the manner provided by                
          section 72.  See sec. 408(d)(1).  A payee will generally not have           
          a basis in the IRA, unless the payee contributed nondeductible              
          amounts to the IRA.  See secs. 72(e), 219(a) and (b), 408(d)(1)             
          and (2); Campbell v. Commissioner, 108 T.C. 54 (1997);  sec.                
          1.408-4(a), (c), Income Tax Regs.  When a payee contributes                 
          nondeductible amounts, the payee’s gross income does include an             
          amount of the distribution in proportion to the nondeductible               
          contribution as compared to the total contribution to the IRA.              
          See secs. 72(e), 408(d)(1); Campbell v. Commissioner, supra; sec.           
          1.408-4(c), Income Tax Regs.                                                
               The parties agree that petitioner received $10,906 in 1995             
          from Mr. Spuler’s IRA.  Petitioner contends that Mr. Spuler had             
          basis in the IRA for the following reason:                                  
                    However, given the history of the contributions as made           
                    subsequent to my father’s retirement from his lifetime            
                    primary employer, Public Service Gas & Electric, it is            
                    reasonable to assume that they were non-deductible                
                    contributions.  He was earning minor wages working                
                    part-time during those years, and would not have needed           
                    and or required deductible contributions.                         
          We do not find petitioner’s unsupported self-serving statement to           
          be sufficient to support the assertion that the IRA included                
          nondeductible contributions.  See Niedringhaus v. Commissioner,             
          99 T.C. 202, 219-220 (1992); Tokarski v. Commissioner, 87 T.C.              

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