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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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