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There was a promissory note or other evidence of indebtedness,
(2) interest was charged, (3) there was security or collateral,
(4) there was a fixed maturity date, (5) a demand for repayment
was made, (6) any actual repayment was made, (7) the transferee
had the ability to repay, (8) any records maintained by the
transferor and/or the transferee reflected the transaction as a
loan, and (9) the manner in which the transaction was reported
for Federal tax is consistent with a loan. See Zimmerman v.
United States, 318 F.2d 611, 613 (9th Cir. 1963); Estate of
Maxwell v. Commissioner, 98 T.C. 594, 604 (1992), affd. 3 F.3d
591 (2d Cir. 1993); Estate of Kelley v. Commissioner, 63 T.C.
321, 323-324 (1974); Rude v. Commissioner, 48 T.C. 165, 173
(1967); Clark v. Commissioner, 18 T.C. 780, 783 (1952), affd. 205
F.2d 353 (2d Cir. 1953). The factors are not exclusive, and no
one factor controls. Rather, our evaluation of the various
factors provides us with an evidential basis upon which we make
our ultimate factual determination of whether a bona fide
indebtedness existed. See Litton Bus. Sys., Inc. v.
Commissioner, 61 T.C. at 377.
With those factors in mind, we turn to the facts and
circumstances surrounding the transfer of indebtedness at issue
to determine whether at the time of the alleged assumption
petitioner entered into a bona fide debtor-creditor relationship
with INI.
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