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Although we are not deciding a debt versus equity question,
we find that the test used by this Court in deciding that issue
will be useful in deciding whether petitioner's transfers of
funds to the restaurants constituted loans. The question of
whether a transfer of funds to a closely held business
constitutes debt or equity must be decided on the basis of all
relevant factors. Dixie Dairies Corp. v. Commissioner, 74 T.C.
476, 493 (1980). Courts look to the following nonexclusive
factors to evaluate the nature of transfers of funds to closely
held businesses: (1) The names given to the documents evidencing
the purported loans; (2) the presence or absence of fixed
maturity dates with regard to the purported loans; (3) the likely
source of any repayments; (4) whether the taxpayers could or
would enforce repayment of the transfers; (5) whether the
taxpayers participated in the management of the business as a
result of the transfers; (6) whether the taxpayers subordinated
their purported loans to the loans of the corporation's
creditors; (7) the intent of the taxpayers and the corporations;
(8) whether the taxpayers who are claiming creditor status were
also shareholders of the corporations; (9) the capitalization of
the corporations; (10) the ability of the corporations to obtain
financing from outside sources at the time of the transfers; (11)
how the funds transferred were used by the corporations; (12) the
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