Thomas A. Johnson - Page 7

          Tokarski v. Commissioner, 87 T.C. 74, 77 (1986); Estate of Mason            
          v. Commissioner, supra at 656-657.                                          
               Petitioner argues that the advances from the various                   
          accounts were loans to Finnimore and that the deposits to the               
          Ticketline account were repayments on the loans.  The existence             
          of a loan is a question of fact to be decided on the basis of all           
          the facts.  Beaver v. Commissioner, 55 T.C. 85, 91 (1970).  Some            
          of the relevant factors are:  Whether the parties were dealing at           
          arm's length; whether the loan was in writing; whether the loan             
          provided for interest; whether repayments were made; whether                
          there was a business purpose for making the loan; and whether               
          payments are not contingent on profits.  See Beaver v.                      
          Commissioner, supra; Arlen v. Commissioner, 48 T.C. 640, 648                
               Petitioner had no promissory note or repayment schedule for            
          the alleged loans.  Petitioner submitted a document that he                 
          claimed was a loan ledger.  The document does not mention loans             
          to or repayments from Finnimore and does not establish that                 
          petitioner made loans to Finnimore.  Petitioner claims that he              
          began charging Finnimore interest in 1988, but petitioner                   
          reported no interest income from the alleged loans.  Petitioner             
          knew that he would not be repaid if Finnimore did not resell the            
          tickets, and we find that ticket sales were the only source of              
          repayment from Finnimore.                                                   

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