Benson v. Commissioner
Mr. Benson established a ten-year trust and transferred to it a building which his corporation then leased.
Mr. Benson borrowed substantially all of the rents generated by the building from the trust. The Internal Revenue Service contended that Mr. Benson “virtually owned” the trust property by reason of the substantial loans from the trust to Mr. Benson. No. 7331-79 (U.S.T.C. 1979).
