- 22 - "reaffirmation", and that both loans were obtained from the same lender. However, the material terms of the two loans, such as the interest rates, prepayment premiums, and repayment periods are significantly different. The requirement of an additional commitment fee further convinces us that the permanent loan constituted a separate obligation on behalf of ME. Moreover, the fact that SouthTrust Bank was the lender of each loan is not determinative of our decision. See Buddy Schoellkopf Prods., Inc. v. Commissioner, 65 T.C. 640, 648-650 (1975). After examining the material terms contained in the loan documents, in lieu of relying merely on their labels, we find that the construction loan and the permanent loan are separate loans. We therefore hold that ME properly amortized its loan commitment fee and attorney's fees over the 1-year period of its construction loan. Taxes The fourth issue for decision is whether REE and ME are entitled to deductions pursuant to section 164(a) for certain taxes incurred in connection with recording mortgages in the State of Florida. REE and ME incurred the following amounts of intangible personal property taxes and documentary stamp taxes during 1992: Intangible Personal Documentary S Corporation Property Tax Stamp Tax REE $ 900 $1,440 ME 3,000 4,800Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Next
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