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relationship exists is a question of fact to be determined upon a
consideration of all the pertinent facts and circumstances.
Fisher v. Commissioner, 54 T.C. 905, 909 (1970). An essential
consideration is whether there exists a good faith intent on the
part of the alleged creditor to enforce repayment and a good
faith intent on the part of the alleged debtor to make repayment.
See id.
The following factors have been taken into account by this
Court and other courts in determining whether such a good faith
intention of repayment exist: (1) Whether a note or other
evidence of indebtedness exists, Clark v. Commissioner, 18 T.C.
780, 783 (1952), affd. 205 F.2d 353 (2d Cir. 1953); (2) whether
interest is charged, id.; (3) whether there is a fixed schedule
for repayments, id.; (4) whether a demand for repayment has been
made, Zimmerman v. United States, 318 F.2d 611, 613 (9th Cir.
1963); and (5) whether at the time the loan was allegedly made
the alleged borrower had the ability to repay it, Jewell Ridge
Coal Corp. v. Commissioner, 318 F.2d 695, 699 (4th Cir. 1963),
affg. T.C. Memo. 1962-194.
In general, the determination of whether a debt is worthless
is a question of fact, and all pertinent evidence must be consid-
ered, including the value of collateral, if any, securing the
debt and the financial condition of the debtor. Sec. 1.166-2(a),
Income Tax Regs.
Section 166(b) provides that the amount of the deduction for
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