- 62 -
Mohan Roy, M.D., Inc. v. Commissioner, T.C. Memo. 1997-562.
Indeed, Burton admitted that possibly some of the automobile
expenses were spent on his family’s cars. The Bensons have
failed to meet their burden of proving error in respondent’s
determination with respect to the amounts still in issue.54 We
hold that, in addition to the amounts conceded, Burton had
constructive dividend income in 1989, 1990, 1993, and 1994 of
$10,624, $8,676, $14,808, and $14,723, respectively.
6. Charitable Contributions
Because respondent has conceded that ERG’s payments of
$6,000, $6,000, $6,000, and $13,500 in 1989, 1990, 1993, and 1994
to Moraga Valley Presbyterian Church (MVPC) are not constructive
dividends, the Bensons are not entitled to deduct these amounts
on their personal returns. See sec. 170(a)(1); sec. 1.170A-1(a),
Income Tax Regs. Additionally, respondent conceded that a $2,000
ERG check to Camp Timberwolf in 1994 was not a constructive
dividend to the Bensons. Thus, the Bensons are not entitled to
deduct this donation.55 See sec. 170(a)(1); sec. 1.170A-1(a),
54We do not find that respondent has affirmatively proven
that the amounts in issue are constructive dividends.
55There appears to be a scrivener’s error in respondent’s
opening brief. Respondent argues: “Finally, with respect to the
1994 check for $2,000 paid to Camp Timberwolf * * * respondent
has conceded that this amount was not a constructive dividend to
* * * [the Bensons]. Therefore, ERG’s charitable contribution to
Camp Timberwolf should be allowed as an itemized deduction on the
Bensons’ 1994 return.” Given respondent’s first argument that to
(continued...)
Page: Previous 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 NextLast modified: May 25, 2011