- 11 - petitioners’ lawsuit against their accountant, Gil Brown, that she did not recall any specific incidents of lending money to the corporation. Estate of Spear v. Commissioner, T.C. Memo. 1993- 213 (slip op. at 41). Petitioners had no documents which corroborate their contention that the loans were made; there are no notes evidencing the loans or records of payments on the loans; the loans were not shown in the books and records of petitioners’ corporations; and there is no evidence that collateral was requested or interest was charged. Estate of Spear v. Commissioner, T.C. Memo. 1993-213 (slip op. at 40-42). To show that funds received were loan repayments, petitioners must show that the loans were bona fide. This depends on all the facts and circumstances; generally no one fact is determinative. John Kelley Co. v. Commissioner, 326 U.S. 521, 530 (1946). Petitioner did not testify that petitioners intended their expenses for their parking lots to be loans. There is no evidence that there were any fixed maturity dates for repayment of the money petitioners gave to the corporations. Considering petitioner’s testimony and the entire record, we continue to conclude that petitioners did not make bona fide loans to their corporations. We do not conclude that our finding that petitioners had $200,000 in cash on December 31, 1974, means that respondent’s determination of petitioners’ opening net worth failed to be made with the requisite “reasonable certainty”. Holland v. UnitedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011