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were interest in substance and form. Respondent's determination
is presumed to be correct, and petitioners bear the burden of
proof. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933).
B. Loans vs. Capital Contributions
The U.S. Court of Appeals for the Fifth Circuit, the circuit
to which these cases are appealable, has identified 13
nonexclusive factors to be considered in deciding whether
advances are debt or equity. Estate of Mixon v. United States,
464 F.2d 394, 402 (5th Cir. 1972). Those factors are: (1) the
name given to the certificate evidencing the indebtedness; (2)
the presence or absence of a fixed maturity date; (3) the source
of payments, i.e., whether the recipient of the funds can repay
the advance with reasonably anticipated cash-flow or liquid
assets; (4) whether the provider of the funds has the right to
enforce payment; (5) whether the provider of the advance gains an
increased right to participate in management; (6) the status of
the contribution in relation to regular creditors; (7) the intent
of the parties; (8) whether the recipient of the advance is
adequately capitalized; (9) whether there is an identity of
interest between the creditor and the shareholder; (10) source of
interest payments, i.e., whether the recipient of the funds pays
interest from earnings; (11) the ability of the corporation to
obtain loans from outside lending institutions; (12) the extent
to which the recipient used the advance to buy capital assets;
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