Larry W. and Cynthia J/ Van Wyk - Page 14

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          The quoted passage indicates that a corporation may be at risk              
          for amounts borrowed from its shareholders by reason of section             
          465(b)(3)(B)(ii).  Yet we can find no legislative history                   
          suggesting that the shareholders will be deemed at risk with                
          respect to such amounts by reason of that provision of the                  
               Petitioners contend that if Congress intended the exception            
          of section 465(b)(3)(B)(ii) to apply only to corporations, i.e.,            
          only at the corporate level, it would have expressly provided               
          that the exception applied only for purposes of calculating                 
          corporate-level at risk amounts.  Petitioners further contend               
          that, because there is no express language in section                       
          465(b)(3)(B)(ii) limiting its application only to corporations,             
          the statute should be construed to afford them relief.  Indeed,             
          if the statute contained such language, our task would have been            
          simpler.  The failure of the statute to contain such language,              
          however, does not persuade us that our interpretation is                    

               (other than as a creditor) in the activity or is                       
               related to a person (other than the taxpayer) having                   
               such an interest.  However, the Act specifies that a                   
               corporation may be considered at risk with respect to                  
               amounts borrowed from its shareholders to finance                      
               participation in an activity.                                          

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