- 3 -
percent additional tax on the $25,000 IRA withdrawal.
Petitioners were able to substantiate, and respondent has
conceded, that $7,017.01 of the IRA distribution was used to pay
qualified higher education expenses in 2001 for Kathleen
consisting of tuition, fees, and room and board. Petitioners
argue that additional expenses totaling $2,684.30 are also
qualified higher education expenses and should not be subject to
the 10-percent additional tax. The disputed $2,684.30 is made up
of the following expenses: (1) $1,585 for a computer; (2) $400
for books; (3) $504.12 for housewares, appliances, and furniture;
and (4) $195.18 for bedding.
Respondent agrees that the expenses for the computer,
housewares, appliances, furniture, and bedding were incurred and
paid in 2001, but argues that they are not qualified higher
education expenses because they were not required by the
university. Respondent argues that the book expense was not
properly substantiated as having been incurred and paid in 2001
for books that were required for Kathleen’s enrollment in
classes.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011