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consolidation agreements with Aaland, to enforce collection of
principal or interest that Aaland owed him.
Viewed in its totality, the evidence in the record strongly
suggests that petitioner’s purported loans to Aaland were
actually in the nature of contributions of risk capital, in
return for which petitioner received his 20-percent ownership
interests in the corporations and by which he sought to protect
his initial investment. Even assuming, however, that petitioner
made bona fide loans to Aaland (and respondent has not argued
otherwise), the record does not support a conclusion that
petitioner had a separate business of lending money. Cf. Sales
v. Commissioner, 37 T.C. 576 (1961); Rollins v. Commissioner,
supra at 613; Estate of Palmer v. Commissioner, 17 T.C. 702
(1951).
Accordingly, we sustain respondent's determination.
To reflect the foregoing,
Decision will be entered for
respondent.
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