- 8 -
therefore the collapse of the deck was not a casualty within the
meaning of section 165. Petitioners are not entitled to a
casualty loss deduction.
2. Section 72(t)
Section 72(t)(1) imposes an additional tax on early
distributions from qualified retirement plans “equal to 10
percent of the portion of such amount which is includable in
gross income.” Petitioners now concede that the entire amount of
the distribution is includable in their 2000 income but take the
position that the section 72(t) additional tax is not applicable
because petitioner was disabled at the time the distribution was
made.
Among other exceptions, none of which apply here, section
72(t)(2)(A)(iii) provides an exception for distributions
“attributable to the employee’s being disabled within the meaning
of subsection (m)(7)”. Section 72(m)(7) defines the term
“disabled” as follows:
(7) Meaning of disabled.--For purposes of this
section, an individual shall be considered to be
disabled if he is unable to engage in any substantial
gainful activity by reason of any medically
determinable physical or mental impairment which can be
expected to result in death or to be of long-continued
and indefinite duration. An individual shall not be
considered to be disabled unless he furnishes proof of
the existence thereof in such form and manner as the
Secretary may require.
The determination of whether a taxpayer is disabled is made
on the basis of all the facts. Sec. 1.72-17A(f)(2), Income Tax
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011