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Memo. 1962-6; Miele v. Commissioner, 56 T.C. 556, 567 (1971),
affd. without published opinion 474 F.2d 1338 (3d Cir. 1973).
This determination is to be made based on all of the facts and
circumstances of the case. Chism's Estate v. Commissioner, supra
at 960. Statements of intent, absent objective indicia of debt,
are less persuasive in situations involving stockholders of a
closely held corporation. Turner v. Commissioner, supra at 654.
A court may look to a variety of factors to determine
whether there was an intent to make a loan. The following is a
nonexclusive list of the objective factors often considered in
deciding whether shareholder withdrawals from a corporation are
loans or constructive dividends:
(1) The taxpayer's degree of control over the corporation;
(2) the existence of restrictions on the amount of
disbursements;
(3) the corporate earnings and dividends history;
(4) the use of customary loan documentation, such as
promissory notes, security agreements or mortgages;
(5) the ability of the shareholder to repay;
(6) the treatment of the disbursements on the corporate
records and financial statements;
(7) the presence of conventional indicia of legal
obligations, such as payment of interest, repayment
schedules, and maturity dates;
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