Lauro G. and Gayle W. Guaderrama - Page 13




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          1982); Belz Inv. Co. v. Commissioner, 72 T.C. 1209 (1979), affd.               
          661 F.2d 76 (6th Cir. 1981).                                                   
               In examining whether the transaction between the two                      
          petitioners was a sale-leaseback or a financing arrangement, we                
          find the following factors to be particularly persuasive:                      
          Conveyance of the Liquor License                                               
               In Helvering v. F.& R. Lazarus & Co., supra, the Supreme                  
          Court found a transaction to be a financing arrangement instead                
          of a sale-leaseback in part because the instrument under which                 
          the taxpayer purported to convey legal ownership to the bank was               
          in reality given and accepted as security.  Here, the conveyance               
          of the liquor license reflects a financing arrangement rather                  
          than a bona fide arm’s-length sale.  While Benavidez purchased                 
          the liquor license for approximately $45,000, the purchase price               
          paid by Guaderrama to Benavidez for the liquor license was only                
          $10.  According to Benavidez, liquor licenses in Dona Ana County               
          currently average between $100,000 to $200,000.  While we do not               
          necessarily accept Benavidez’ testimony as establishing the worth              
          of a New Mexico liquor license, the fact that Guaderrama was                   
          willing to hold it as collateral towards an approximately                      
          $272,000 debt indicates that $10 is far from its fair market                   
          value.  Thus, although legal title of the liquor license may have              
          been transferred to Guaderrama, it was not an arm’s-length                     








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