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all of their shares of Price Co. stock is 10 cents per share.
Sec. 1015(a).
The burden of proof is on petitioners to show that the
shares of stock at issue were bona fide loans and not gifts.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). We
always examine intrafamily transactions with special scrutiny.
Caligiuri v. Commissioner, 549 F.2d 1155, 1157 (8th Cir. 1977),
affg. T.C. Memo. 1975-319; Perry v. Commissioner, 92 T.C. 470,
481 (1989), affd. without published opinion 912 F.2d 1466 (5th
Cir. 1990); Bragg v. Commissioner, T.C. Memo. 1993-479. The
presumption is that a transfer between family members is a gift.
Perry v. Commissioner, supra at 481; Estate of Reynolds v.
Commissioner, 55 T.C. 172, 201 (1970). This presumption may be
rebutted by an affirmative showing that there existed a real
expectation of repayment and intent to enforce the collection of
the indebtedness. Estate of Van Anda v. Commissioner, 12 T.C.
1158, 1162 (1949), affd. per curiam 192 F.2d 391 (2d Cir. 1951).
The transfers are loans for Federal income tax purposes if,
at the time the stock was transferred, the transferee
unconditionally intended to repay the stock, and the transferor
unconditionally intended to secure repayment. See Zimmerman v.
United States, 318 F.2d 611 (9th Cir. 1963); Jones v.
Commissioner, T.C. Memo. 1997-400. Thus, for petitioners to
treat the shares received from Drachman as loans, petitioners
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