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a debt, and its characteristic was not changed by the transfer of
the judgment to petitioner.
In support of his argument that the debt was a business
debt, petitioner cited numerous cases in which advances to
corporations by employees and/or shareholder-employees were found
to constitute business bad debts: Fitzpatrick v. Commissioner,
T.C. Memo. 1967-1; Litwin v. United States, 67 AFTR 2d 91-1098,
91-1 USTC par. 50,229 (D. Kan. 1991), affd. 983 F.2d 997 (10th
Cir. 1993); Baldwin v. Commissioner, T.C. Memo. 1993-433; Trent
v. Commissioner, 291 F.2d 669 (2d Cir. 1961), revg. 34 T.C. 910
(1960); Lundgren v. Commissioner, 376 F.2d 623 (9th Cir. 1967),
revg. T.C. Memo. 1965-314; Kelson v. United States, 73-2 USTC
par. 9565 (C.D. Utah 1973), Stratmore v. United States, 292 F.
Supp. 59 (D. N.J. 1968), revd. 420 F.2d 461 (3d Cir. 1970); Jaffe
v. Commissioner, T.C. Memo. 1967-215; Litterio v. Commissioner,
T.C. Memo. 1992-524, affd. without published opinion 21 F.3d 423
(4th Cir. 1994). The Court has considered these cases and
concludes these cases are not inconsistent with the holding in
this case. The cases cited by petitioner recite the same
principles set forth in this opinion: that a debt will be
characterized as a business debt rather than as a nonbusiness
debt if the debt bears a proximate relationship to the taxpayer's
trade or business and that the determination of such a
relationship is a question of fact. This Court is satisfied that
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