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Meanwhile, in March 1998, petitioner filed for divorce from
her husband. She paid legal fees of $943 in connection with the
divorce.2 No alimony was awarded to petitioner as a result of
the divorce; rather, petitioner was required to make alimony
payments.
On her 1998 individual Federal income tax return, petitioner
reported adjusted gross income of $40,399, reflecting claimed
deductions of $2,000 for a contribution to an IRA and $5,000 for
payment of alimony. She did not claim a deduction for any
portion of the divorce-related attorney fees.
The first issue for decision is whether petitioner is
entitled to deduct a contribution to her IRA.
In general, a taxpayer is entitled to deduct the amount of
her contribution to an IRA. Sec. 219(a). The deduction in any
taxable year generally is limited to $2,000. Sec. 219(b)(1)(A).
The amount of the deduction is further limited where the taxpayer
is, for any part of the taxable year, an “active participant”
under certain pension plans. Sec. 219(g). In such a case, for a
taxpayer who files an individual return, the deduction allowable
is reduced to zero where the taxpayer’s adjusted gross income (as
modified by section 219(g)(3)(A)) equals or is greater than
$40,000. See id. Petitioner’s modified adjusted gross income in
1998 exceeded $40,000. Thus, if petitioner was an active
2Petitioner argues that $600 of the fees are deductible.
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