Diep N. Hoang - Page 6

                                        - 6 -                                         
          burden of establishing error in respondent’s determinations.  See           
          Lerch v. Commissioner, 877 F.2d 624, 631-632 (7th Cir. 1989),               
          affg. T.C. Memo. 1987-295; Geiger v. Commissioner, 440 F.2d 688,            
          689-690 (9th Cir. 1971), affg. per curiam T.C. Memo. 1969-159;              
          Tokarski v. Commissioner, 87 T.C. 74, 77 (1986).                            
               Accordingly, we sustain respondent’s determination regarding           
          petitioner’s interest income for 2001.                                      
          IRA Distributions                                                           
               Petitioner stipulated that he received distributions                   
          totaling $9,788 from the Janus IRA in 2001.  Petitioner admitted            
          that the “growth” of his IRA is taxable; however, he contends               
          that a portion of the IRA distributions is not taxable.                     
               Section 408(d)(1) provides generally that “any amount paid             
          or distributed out of an individual retirement plan shall be                
          included in gross income by the payee or distributee, as the case           
          may be, in the manner provided under section 72.”  The term                 
          “individual retirement plan” includes an IRA.  Sec. 7701(a)(37).            
          All distributions during any taxable year are treated as one                
          distribution, and the value of the contract, the income on the              
          contract, and the investment in the contract are computed as of             
          the close of the calendar year in which the taxable year begins.            
          See sec. 408(d)(2).                                                         
               Generally, taxpayers have no basis in an IRA.  Sec. 1.408-             
          4(a)(2), Income Tax Regs.  A taxpayer has a basis in IRA                    

Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011