- 93 -
income with respect to the amounts received from ERG and reported
on his 1994 return as “other income”.
19. Respondent concedes that the Bensons did not have
constructive dividend income in 1994 with respect to payments
that ERG made for travel expense for $536.
20. Respondent concedes his alternative position that the
fair market value of rent on the Stanford plant was as determined
by an expert appraiser whose report respondent submitted to the
Court.
21. Respondent concedes ERG’s computer purchase in the
amount of $3,847 did not constitute a constructive dividend to
the Bensons in 1993.
22. Respondent concedes that ERG’s payment of $692 for
health insurance coverage for Esther did not constitute a
constructive dividend to the Bensons in 1994.
23. Respondent concedes that if the Court determines that
the Bensons received constructive dividends of $96,749 from ERG’s
payment of legal expenses, the Bensons are entitled to deduct
legal expenses (subject to the limitations in section 67) of
$77,973 for 1989.
24. For the years 1988, 1989, 1990, 1993, and 1994 to the
extent that the Court determines constructive dividends, these
amounts are taxed as dividends to the Bensons.
Page: Previous 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 NextLast modified: May 25, 2011