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that there was no ordinary income or short-term gain to be
recognized upon his contribution to Kenyon College because his
basis exceeded fair market value.
To the contrary, respondent takes the position that the
purported loans by petitioner to McZand Corporation were actually
contributions by petitioner to McZand's capital. Thus, it is
argued, because the claimed debt was capital and petitioner owned
100 percent of McZand stock both before and after the
contribution, there was no consideration paid by petitioner for
receipt of the donated property. As set forth in Segel v.
Commissioner, 89 T.C. 816 (1987), when determining whether
shareholder advances are debt or equity, cases have generally
relied on various factors which include the common identity
between the shareholders and the putative creditors, the
extensive participation in management by such creditors, the
corporate ability to borrow from a commercial or nonrelated
source at similar rates, terms and other conditions, the thinness
of the capital structure of the corporation, and the relative
position of the putative creditors to other creditors. See
Estate of Mixon v. United States, 464 F.2d 394, 402 (5th Cir.
1972).
Here there was a 100-percent identity between shareholders
and putative creditors. Prior to October 1979 McZand stock was
owned 50 percent by the Zand family and 50 percent by the McCabe
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