Jewell E. Gray, Donor, Deceased and Estate of Jewell E. Gray, Deceased, Jewell Mae Detjen, Personal Representative, et al. - Page 19

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                    l.   Intent to Repay                                              
               Petitioner contends that Weiser's and Pollett's testimony              
          establishes that decedent intended to repay the amounts                     
          transferred.  We disagree.  Weiser testified that decedent did              
          not tell him that she did not intend to repay the purported                 
          loans.  This does not show that decedent intended to repay the              
          transfers.  Pollett testified that decedent told her that she               
          intended to repay the transfers.  However, decedent had repaid              
          only $103,000 of the amounts transferred when she died, leaving a           
          claimed balance of $1,724,198.  The testimony that decedent                 
          intended to repay those funds is less persuasive than decedent's            
          conduct.  This factor favors respondent.                                    
               3.  Conclusion                                                         
               Courts carefully scrutinize a taxpayer's claim that                    
          transfers from corporations to their sole stockholders are loans.           
          Turner v. Commissioner, 812 F.2d 650, 654 (11th Cir. 1987), affg.           
          T.C. Memo. 1985-159.  Petitioner argues that the notes decedent             
          gave to Beth W. Corp. and decedent's and Beth W. Corp.'s records            
          establish that the transfers were loans; however, we give less              
          weight to written evidence of debt, bookkeeping and financial               
          reporting, and the labels used by the parties when, as here, the            
          corporation is closely held.  Fin Hay Realty Co. v. United                  
          States, 398 F.2d 694, 697 (3d Cir. 1968); Calumet Indus., Inc. v.           
          Commissioner, 95 T.C. 257, 286 (1990); Jos. N. Neel Co. v.                  
          Commissioner, 22 T.C. 1083, 1090 (1954).  We give more weight to            

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