Billie and Florence Lykins - Page 8

          existed.  Dixie Dairies Corp. v. Commissioner, 74 T.C. 476, 493             
          (1980); Litton Business Sys., Inc. v. Commissioner, 61 T.C. 367,            
          377 (1973).  Factors considered in determining whether an amount            
          advanced is a loan or a capital contribution include: the intent            
          of the parties; the names given to the written instruments                  
          evidencing the advance; the failure of the party receiving the              
          advance to repay; the right to enforce repayment; the presence or           
          absence of a fixed maturity date; participation in management as            
          a result of the advance; and the risk involved in making the                
          advance.  Dixie Dairies Corp. v. Commissioner, supra.  No single            
          factor is decisive, and, due to the myriad of circumstances in              
          which this issue can arise, some of the factors may not be                  
          relevant in a particular case.  Id.                                         
               Respondent contends that petitioner's advance to Tag Coal on           
          August 30, 1984, was a capital contribution and not a loan.                 
          Respondent does not apply the foregoing factors to reach her                
          conclusion; rather, respondent argues that the August 27 and                
          October 1, 1984 agreements prove that petitioner paid, in part,             
          $175,970.51 in exchange for his 50-percent partnership interest             
          in J & M.                                                                   
               We note that the following events occurred somewhat                    
          contemporaneously:  petitioner advanced $175,970.51 to Tag Coal             
          to satisfy its outstanding employment tax liability; petitioner             
          received a 50-percent partnership interest in J & M; and                    
          petitioner applied for and received a $700,000 loan intended to             

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