- 32 -
calculation of the Bensons’ interest income reduces the total
interest income by $4 of interest received from Baden Spiel Haus
and $411 of interest received from the Evelyn Hermsmeir
partnership. We agree with respondent’s calculation. The
Bensons’ reported gross income includes income that they received
from the Baden Spiel Haus and Evelyn Hermsmeir partnerships. If
their interest income were not reduced by the amount of interest
income received from these two partnerships, the Bensons’
reported gross income would include this interest income twice.
We find that the Bensons’ reported interest income of $6,690 for
1994.
On brief, the Bensons assert that they reported dividend
income of $29,327 in 1994.17 Respondent calculated the Bensons’
reported dividend income as totaling $62,748 and reduced this
amount by $62,735, which represents the amount of dividend income
that the Bensons received from NPI. Because their share of NPI
income will be calculated separately, including the NPI dividend
income as a portion of the Bensons’ dividend income would include
this item twice. We agree with respondent and find that the
Bensons reported dividend income of $13 in 1994.
As with the dividend income, the parties dispute the
Bensons’ reported royalty income. The Bensons calculated their
17 The Bensons’ 1994 return reports a taxable refund of
$29,327. It appears that they mistakenly listed the reported
taxable refund as a dividend.
Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NextLast modified: May 25, 2011