- 8 -
Stat. 1791. Petitioner’s spouse died in 1999. Therefore, the
present annuity payments are not subject to the death benefit
exclusion provided by section 101(b).
Furthermore, petitioner has not provided any evidence that
she or her spouse had an “investment in the contract”. Also,
petitioner has not demonstrated that the annuity payments she
received are within any exclusion. Therefore, the present
annuity payments are taxable, and respondent’s determination on
this issue is sustained.
2. IRA Distributions
As previously stated, gross income includes all income from
whatever source derived. Sec. 61(a). Section 61(b) specifically
includes items included under section 72 (relating to annuities
and IRAs).
As a general rule, amounts paid or distributed out of
individual retirement plans, including IRAs, are included in
gross income when received by the payee or distributee under
provisions of section 72. Sec. 408(d)(1). The regulations
provide in relevant part as follows:
Except as otherwise provided in this section, any amount
actually paid or distributed or deemed paid or distributed
from an individual retirement account or individual
retirement annuity shall be included in the gross income of
the payee or distributee for the taxable year in which the
payment or distribution is received.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011