Myer B. Barr and Estate of Diana L. Barr - Page 10

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          account at 10 to 12 percent interest.  Second, Jeffrey also                 
          testified that his wife was furious when he told her about the              
          loan.  Third, at that time, Jeffrey had left his job at Citibank            
          where he had been employed for 17 years.  He had gone to work for           
          a small consulting firm and stated that "the first day I joined             
          them, I knew that it was a big mistake."  Jeffrey's wife had also           
          taken a leave of absence from her job due to pregnancy.                     
          Jeffrey's financial situation did not allow him to make the                 
          advance without the expectation of repayment.  A bona fide loan             
          existed between Jeffrey and Stephen.                                        
               When petitioner purchased the note, he stepped into                    
          Jeffrey's shoes as the creditor and was entitled to the same                
          rights created under the note.  See, e.g., First Union Natl. Bank           
          of Florida v. Hall, 123 F.3d 1374 (11th Cir. 1997); Underhill v.            
          Commissioner, 45 T.C. 489 (1966).  A bona fide loan existed                 
          between petitioner and Stephen, and we believe that petitioner              
          shared Jeffrey's expectation of repayment.  Furthermore, we had             
          an opportunity to observe petitioner's demeanor at trial and we             
          find him to be credible.  Accordingly, petitioners are entitled             
          to the $100,000 nonbusiness bad debt deduction for 1993.                    
          Issue 2.  Charitable Contributions                                          
               Respondent determined that for 1993 petitioners were not               
          entitled to certain deductions for charitable contributions.                
               We begin by noting that, as a general rule, the                        
          Commissioner's determinations are presumed correct, and the                 
          taxpayer bears the burden of proving otherwise.  Rule 142(a);               

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