- 20 -
property).20 Abutting the Dover property is the real property
located at 143 Alice Lane, Orinda, California (143 Alice Lane).
In June 1990, ERG purchased 143 Alice Lane for $335,000.21
ERG took title to the property in the name “Burton O. Benson,
Trustee” of the ERG Retirement Trust.22 The ERG Retirement Trust
neither paid for the purchase nor reflected the property as an
asset on any tax return or financial statement. ERG’s purchase
of 143 Alice Lane, along with the Bensons’ purchase of the Dover
property, gave the Bensons a large, uninterrupted piece of land
behind and abutting their residence.
On or about April 10 and December 10, 1993, ERG paid
$1,925.57 and $1,953.14, respectively, for property taxes on 143
Alice Lane. In 1994, ERG paid $8,196 in property taxes for 143
Alice Lane.
On October 28, 1997, Burton as trustee of the ERG Retirement
Trust deeded 143 Alice Lane to the Bensons as husband and wife.
20The Bensons were deeded the Dover property on or about May
23, 1991.
21The price paid inclusive of fees and taxes was
$336,410.72.
22During the years at issue, ERG maintained a single plan
qualified under ch. 1, subch. D of the Code, the Energy Research
& Generation, Inc., Profit Sharing Plan (the plan). The plan
assets were invested in a single trust, the ERG Retirement Trust.
ERG maintained Franklin Money Fund accounts under the names ERG
Ford Retirement Trust and ERG Retirement Trust. The ERG Dynar
Retirement Trust and the ERG Ford Retirement Trust are not
separate trusts.
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