- 6 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011