Jewell E. Gray, Donor, Deceased and Estate of Jewell E. Gray, Deceased, Jewell Mae Detjen, Personal Representative, et al. - Page 14

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          reported that decedent owed $1,724,198 to Beth W. Corp. when she            
          A.   Whether the Transfers from Beth W. Corp. to Decedent Are               
               Loans or Dividends                                                     
               1.   Background and Contentions of the Parties                         
               Petitioner contends that the transfers from Beth W. Corp. to           
          or on behalf of decedent are loans which decedent owed to Beth W.           
          Corp. during her life and which are deductible as a claim against           
          decedent's estate under section 2053(a).                                    
               A transfer of money is a loan for Federal income tax                   
          purposes if, at the time the funds were transferred, the                    
          transferee unconditionally intended to repay the money, and the             
          transferor unconditionally intended to secure repayment.  Haag v.           
          Commissioner, 88 T.C. 604, 616 (1987), affd. without published              
          opinion 855 F.2d 855 (8th Cir. 1988); see also Haber v.                     
          Commissioner, 52 T.C. 255, 266 (1969), affd. 422 F.2d 198 (5th              
          Cir. 1970); Saigh v. Commissioner, 36 T.C. 395, 419 (1961).                 
               Respondent concedes that if we decide that the transfers at            
          issue are loans, then they are included in the value of the stock           
          of Beth W. Corp., and petitioner may deduct the amount of the               
          unpaid transfers as a claim against the estate under section                

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