- 23 - Items of omitted Amounts omitted gross income by the Bensons Payments from ERG to NPI $483,098 Check ref: Carroll 96,749 Automobile expenses 10,624 Life insurance 2,404 ERG payment related to 29,400 Lowell plant Director’s fees 6,000 Franklin dividends 193 Royalty income (1099) 709 Reverse royalty income 1(165,481) recharacterized as constructive dividends Reverse NPI rental income 1(19,610) recharacterized as constructive dividends Total 444,086 1 This amount represents a negative number. 2. Reported Gross Income The parties agree that the Bensons reported gross income of $535,041, which consists of: (1) Wages of $103,372; (2) interest income of $2,505; (3) rental income totaling $24,950; (4) royalty income totaling $166,872; (5) other income from NPI of $100,000; and (6) income from the Evelyn C. Hermsmeir partnership of $137,342.13 Additionally, respondent concedes that the Bensons reported income of $625 from the Baden Spiel Haus partnership. 13 The Bensons assert that their 1989 return reported income of $137,341 from the Evelyn C. Hermsmeir partnership. Respondent argues that the Bensons reported $137,342 on their return from the Evelyn C. Hermsmeir partnership. We will calculate the Bensons’ reported gross income using respondent’s figure, as it is more favorable to the Bensons than their own calculation.Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
Last modified: May 25, 2011