Sylvia Osterbauer and Estate of Joseph Osterbauer, Deceased, Sylvia Osterbauer, Personal Representative - Page 9

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          from language in Litwin stating that a court is more likely to              
          find a nonbusiness loan where the taxpayer's investment is                  
          relatively large, the taxpayer's salary is relatively small, and            
          the taxpayer's other sources of income are relatively large.                
          Litwin v. United States, supra at 1000.  It does not follow that            
          a small investment is more likely to be made in a taxpayer's                
          trade or business.  The court in Litwin, referring to a situation           
          where three factors existed, (1) a large investment, (2) a small            
          salary, and (3) large alternative sources of income, concluded              
          that, in that instance, a nonbusiness motive is more likely.  The           
          court did not say that, independent of all other factors, size of           
          investment alone will be determinative.  Furthermore, even should           
          we accept petitioners' statement as true, petitioners have put              
          forth no evidence as to the value of the four parcels of land               
          that petitioner and decedent contributed to International, and,             
          thus, we do not know the size of their investment.                          
               In order to determine a taxpayer's dominant motivation, it             
          is often helpful to determine how the taxpayer would have                   
          benefited if the loan had not gone bad.  When the creditor or               
          guarantor of a corporate debt is a shareholder/investor and also            
          an employee, mixed motives for the loan or guaranty are often               
          present, and the critical issue becomes which motive is dominant.           
          Id. at 1000.  In the case at bar, petitioners would have bene-              
          fited in that the value of their stock in International Mining              
          would have gone up or dividends could have been paid to them.               




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