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protect one's employment or salary. Weber v. Commissioner, T.C.
Memo. 1994-341. "[I]t must be clear from the record that the
primary reason for making the advances which gave rise to the
debts was business related rather than investment related".
Smith v. Commissioner, 60 T.C. 316, 319 (1973).
Generally, returns from investing result from appreciation
and earnings on the investment rather than from personal effort
or labor. United States v. Generes, supra at 100-101.
Conversely, one's role or status as an employee is a business
interest. It typically involves the exertion of effort and labor
in exchange for a salary. Id.; see also Litwin v. United States,
983 F.2d 997 (10th Cir. 1993); Smartt v. Commissioner, supra.
If the dominant motive was to increase the value of
petitioner's stock in the auto dealership, then the loan was a
nonbusiness investment. If the dominant motive was to increase
or protect the taxpayer's salary, then the loan was a business
debt. If both outcomes occurred, then a consideration of all of
the relevant facts, emphasizing the objective factors and giving
controlling weight to no one single factor (the Generes
approach), should be utilized. Litwin v. United States, supra;
Smartt v. Commissioner, supra.
Respondent has conceded that the $400,000 business bad-debt
deduction claimed on petitioner's 1990 Federal income tax return
arises from the $400,000 payment on the floor plan loan, which is
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