Robert R. Plante and Mary B. Plante - Page 13

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          between creditor and stockholder; (10) the 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, 464 F.2d 394 (5th Cir. 1972);             
          see also Lane v. United States (In re Lane), 742 F.2d 1311 (11th            
          Cir. 1984); Stinnett's Pontiac Serv., Inc. v. Commissioner, 730             
          F.2d 634 (11th Cir. 1984), affg. T.C. Memo. 1982-314.                       
               A shareholder/taxpayer seeking to treat an advance to a                
          corporation as a loan bears the burden of proof on the point,               
          Rule 142(a); Dixie Dairies Corp. v. Commissioner, supra, as do              
          petitioners in this case.  Transactions between a shareholder and           
          a closely held corporation require special scrutiny.  Gilboy v.             
          Commissioner, T.C. Memo. 1978-114.                                          
               Taking into account the above factors, we first consider               
          whether the $475,000, or any portion thereof, constituted a loan,           
          or loans, for Federal income tax purposes.  Petitioners contend             
          that as of December 20, 1991, the entire $475,000 represented a             
          worthless bona fide debt, within the meaning of section                     
          166(a)(1), owed to petitioner from BCBI.  They further argue that           
          no part of the debt constitutes a nonbusiness debt within the               
          meaning of section 166(d), and therefore they are entitled to a             
          business bad debt deduction in the amount of $475,000 for the               

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