Harold A. Lange - Page 8

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          Pension Distributions                                                       
               Next, petitioner claims, as he did in Lange, that the                  
          pension distributions he received in the relevant year are not              
          taxable on the mistaken belief that he had contributed to the               
          plan.  Based upon the record, and upon our holding in Lange, we             
          find that the pension distributions petitioner received in 2002             
          from the National Electrical Benefit Fund and from the Electrical           
          Workers Pension Trust Fund are taxable because they were derived            
          wholly from employer contributions.  Lange v. Commissioner, supra           
          (citing Ashman v. Commissioner, T.C. Memo. 1998-145, affd. 231              
          F.3d 541 (9th Cir. 2000); Knight v. Commissioner, T.C. Memo.                
          1989-219).  We further find no evidence to support petitioner’s             
          “new” argument that the pension distributions are excludable                
          under section 104 for personal injuries petitioner allegedly                
          sustained while he was employed.                                            
          Social Security Benefits                                                    
               We next address whether the $14,388 of Social Security                 
          benefits petitioner received in 2002 was taxable.  Petitioner               
          claims, as he did in Lange, that the Social Security benefits he            
          received were not taxable.  He argues that Social Security                  
          benefits are not taxable because they are a return of what he               
          earlier contributed to the “United States Trust Fund.”  As in               
          Lange, we conclude that 85 percent of the amount of Social                  
          Security benefits petitioner received, or $12,230 in 2002, is               
          taxable.  See sec. 86(a)(2), (c)(1) and (2).                                






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