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subject to one or more contingencies or conditions. See Hunt v.
Commissioner, T.C. Memo. 1989-335 (borrowers' ability to repay
depended to a sizeable extent on increased value of their
investments in silver, but their obligations to pay were fixed
and absolute; held, debt not "contingent", and bad debt deduction
could be proper, despite the "risk" that the borrowers could not
repay); see also Goldstein v. Commissioner, T.C. Memo. 1980-273,
where we found that the Commissioner had confused
the concept of a contingency which invalidates the bona
fide nature of a loan with the risks that are inherent
in any loan transaction. There is always some element
of risk that a loan might not be repaid. The existence
of this risk does not mean, however, that repayment is
contingent on the nonoccurrence of that risk. * * *
After reviewing the entire record, we are convinced
petitioner's stipulation that Mark Mann's repayment of the
advances was "contingent" was not an admission that Mark's
promise or obligation to repay was conditioned upon his receiving
sufficient future earnings from petitioner. Rather, it was an
acknowledgment that Mark's ability to repay depended on his
having gainful future employment. This latter kind of
contingency or risk (which often exists in the case of unsecured
debt) may be a relevant factor in determining whether the
advances were bona fide debt, because it affects the likelihood
of repayment. However, it does not by itself render contingent,
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