Leo N. Levitt and Ruth G. Levitt - Page 50

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          or collateral, Zimmerman v. United States, 318 F.2d 611, 613 (9th           
          Cir. 1963); (d) whether there is a written loan agreement, Road             
          Materials, Inc. v. Commissioner, 407 F.2d 1121, 1123 (4th Cir.              
          1969), affg. T.C. Memo. 1967-187; (e) whether the parties'                  
          records, if any, treat the transaction as a loan, id. at 1124-              
          1125; and (f) whether the borrower has made any repayments,                 
          Estate of Ames v. Commissioner, a Memorandum Opinion of this                
          Court dated Feb. 7, 1946.  The first four of these factors favor            
          respondent because there is no evidence that petitioner or Resyn            
          had a note, loan agreement, or any other written instrument of              
          indebtedness, or agreed to any rate of interest or a repayment              
          schedule, or provided security.  Finally, there is no evidence              
          that Resyn sought payments from petitioner.                                 
               Petitioners argue that petitioner repaid the loans by                  
          forgoing salary and by making repayments.  Petitioners contend              
          that these repayments are recorded in Resyn's books.  However,              
          Resyn's books showing repayments are not in evidence.  There is             
          no evidence that petitioner forfeited any salary to make loan               
          repayments in excess of amounts taken into account by respondent.           
               Petitioners argue that the amounts that Resyn paid for their           
          personal benefit are loans because Resyn's records treat them as            
          a loan receivable.  We disagree.  This factor alone is not                  
          sufficient to show that those payments are loans.  Road                     
          Materials, Inc. v. Commissioner, supra at 1124; Calumet Indus.,             
          Inc. v. Commissioner, supra at 288; Baird v. Commissioner, 25               




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