- 3 -
Collectively, petitioners realized $85,630.90 of conversion
income in 1998. Pursuant to section 408A(d)(3)(A)(iii),
petitioners elected to report the conversion income on a 4-year
ratable basis for a total annual amount of $21,407.73 beginning
in 1998 through 2001.
B. Petitioners’ Social Security Benefits
Petitioners received the following Social Security benefits
during the years in issue:
1998 1999
Petitioner Robert L. Helm $2,277 $9,228
Petitioner Sara J. Helm 6,561 6,654
Total 8,838 15,882
C. Petitioners’ Forms 1040
For each of the 1998 and 1999 tax years, petitioners timely
filed a joint Form 1040, U.S. Individual Income Tax Return. On
both returns, petitioners listed their occupation as retired.
Each petitioner attached a Form 8606, Nondeductible IRAs, to
their 1998 return reporting their respective amount of conversion
income and electing to ratably report such income over a 4-year
period.
Petitioners reported the following income items on their
returns for the years in issue:
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Last modified: May 25, 2011