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1977 individual income tax return did not report a sale of either
of the properties, and petitioner did not make any payments on
either of the properties until 1989. Petitioner focuses on the
fact that it recorded debt on its books in connection with the
transfer. We are not impressed. Under the facts at hand,
petitioner’s accounting entry lends little (if any) support for a
finding of debt. See Raymond v. United States, supra at 191.
This is particularly true, given the fact that the parties did
not deal at arm's length.
This factor is neutral.
ii. Fixed Maturity Date
The presence of a fixed maturity date weighs toward debt,
but is not dispositive of a debtor-creditor relationship.
American Offshore, Inc. v. Commissioner, 97 T.C. 579, 602 (1991).
The presence of a fixed maturity date may be offset by other
facts in the record.
Although the Second Clarksville note bore a maturity date of
November 3, 1982, petitioner made no payments on this note until
1989. Petitioner also made no payments for the Mishawaka
property until 1989. The timing of these payments indicates that
a debtor-creditor relationship was not contemplated by petitioner
and Mr. Mohney. The presence of the fixed maturity date on the
Second Clarksville note is further downplayed by the fact that
Mr. Mohney did not pursue collection or inquire as to payment.
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