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that legal obligations were created, and this factor weighs in
favor of treating the disbursements as dividends, not loans.
h. The corporation's attempts to enforce repayment
Petitioner produced no evidence of any steps taken by
Goshorn to compel repayment of the amounts that it carried as an
account receivable from shareholder. This factor weighs in favor
of treating the distributions as constructive dividends.
i. The shareholder's intention or attempts to repay
Repayment is strong evidence that a disbursement was
intended as a loan. Crowley v. Commissioner, 961 F.2d at 1083.
Where corporate distributions are repaid in full or in part from
time to time, a true loan is indicated. Baird v. Commissioner,
supra. Here, petitioner has made numerous repayments over the
years.
First, petitioner's largest credits against his "loan
account" came from the rent that Goshorn owed petitioner for the
use of the Eudora property. These credits totaled $195,000
during the years in issue.
Second, petitioner has also been repaying a number of
Goshorn's liabilities. Petitioner has been personally paying
Goshorn's liabilities to Reddi-Mix Concrete, a debt of about
$40,000 and to a pipeline company for material, a debt of about
$10,000. These payments amount to approximately $50,000.
Finally, in April 1993, petitioner and his wife personally
borrowed $181,320.36 from the Aurora National Bank and used the
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