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applies to the claimed advances, and there is no evidence that
Cabana Boy had to repay petitioners at any time. This factor
favors respondent.
4. Collateral or Other Security
The absence of any requirement for collateral or other
security suggests that advances are equity. See Slappey Drive
Ind. Park v. United States, 561 F.2d 572, 580 n.11 (5th Cir.
1977); Zimmerman v. United States, 318 F.2d 611, 613 (9th Cir.
1963). There is no evidence that petitioners required Cabana Boy
to provide collateral or any other security. This factor favors
respondent.
5. Treatment of Advances in Books and Records
Treatment of advances as debt in books and records suggests
that the advances are loans. See Tyler v. Tomlinson, 414 F.2d
844, 850 (5th Cir. 1969); American Offshore, Inc. v.
Commissioner, supra at 604. Hyman treated some of the advances
as debt on Cabana Boy's financial statements and tax returns.
This factor favors petitioners.
6. Repayments
The making of repayments suggests that advances were loans.
See Tyler v. Tomlinson, supra; American Offshore, Inc. v.
Commissioner, supra at 603. There is no evidence that Cabana Boy
made any repayments to petitioners.
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