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used for personal expenses. For example, in 1993, check No. 31
is made payable to ERG Retirement Trust for $8,000; similarly, in
1994 Burton issued two checks for expenses relating to his
sailboat, Risktaker, a check to Berkeley Yamaha, and checks to
various individuals. In the face of the above facts and
concessions, the Bensons failed to substantiate any of the
expenses for which checks were written from this account and
otherwise failed to demonstrate a business purpose for any of the
expenditures. Accordingly, we find and hold that, in addition to
the amounts conceded, Burton received and failed to report
constructive dividends in 1993 and 1994 of $8,000 and $2,698,
respectively.
3. Payment for 143 Alice Lane
The parties do not dispute that in 1990 ERG paid $336,500
for the real property described as 143 Alice Lane and held that
property in the name “ERG Retirement Trust”. Petitioners did not
object to respondent’s requested finding of fact that the
purchase of 143 Alice Lane gave the Bensons “a large,
uninterrupted piece of land behind and abutting their personal
residence.”
The Bensons’ only argument is that they did not receive a
personal benefit until 1997, a year not before the Court, when
the ERG Retirement Trust deeded the property to the Bensons in
their individual capacities for no consideration. We disagree.
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