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or equity: (1) The name given to the certificate evidencing the
indebtedness; (2) the presence or absence of a fixed maturity
date; (3) the source of payments; (4) the right to enforce
payment of principal and interest; (5) participation in
management flowing as a result of the advance; (6) the status of
the contribution in relation to regular corporate creditors; (7)
the intent of the parties; (8) "thin" or adequate capitalization;
(9) identity of interest between creditor and stockholder; (10)
source of interest payments; (11) the ability of the corporation
to obtain loans from outside lending institutions; (12) the
extent to which the advance was used to acquire capital assets;
and (13) the failure of the debtor to repay on the due date or to
seek a postponement. Estate of Mixon v. United States, supra at
402.
In weighing the evidence favoring characterization of the
advance as debt or equity, we recognize that the various factors
are not of equal significance, and that no one factor is
controlling. John Kelley Co. v. Commissioner, 326 U.S. 521, 530
(1946); Estate of Mixon v. United States, supra at 402. This
Court considers the ultimate inquiry to be: "Was there a genuine
intention to create a debt, with a reasonable expectation of
repayment, and did that intention comport with the economic
reality of creating a debtor-creditor relationship?" Litton Bus.
Sys., Inc. v. Commissioner, 61 T.C. 367, 377 (1973). We view the
transaction as of the time the note was issued and not when
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