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Recognizing that no single factor is determinative, the
courts have applied a variety of factors in deciding whether a
guarantee was a loan or a capital contribution. Among these
factors are the name given to the certificate evidencing the
indebtedness, whether repayment depended on the success of the
business, whether the right to be repaid by the corporation for
payments on the guarantee was subordinated to other corporate
indebtedness, what the intent of the parties was in creating the
guarantee, whether the initial capital of the corporation was
adequate, whether outside sources would have extended the
corporation a line of credit without the guarantee, whether the
corporation repaid the guaranteed loans, and whether the
corporation gave the guarantor or the lender any security. In Re
Lane, supra; Plantation Patterns, Inc. v. Commissioner, 462 F.2d
712 (5th Cir. 1972), affg. T.C. Memo. 1970-182; Intergraph Corp.
& Subs. v. Commissioner, 106 T.C. 312 (1996). The ultimate
question is "'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?'" Calumet Industries, Inc. v.
Commissioner, 95 T.C. 257, 286 (1990) (quoting Litton Bus. Sys.,
Inc. v. Commissioner, 62 T.C. 367, 377 (1973)).
We see no purpose to be served in analyzing each of the
foregoing factors as applied to the situation herein. It is
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