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necessary to resolve the determinations that were described in
the notice of deficiency, so as to justify placing the burden of
proof on respondent. Cf. Shea v. Commissioner, supra at 197.
The burden of proof remains with petitioners.
C. Bad Debt Deduction
A taxpayer generally may deduct a debt that becomes
worthless within the taxable year. See sec. 166(a)(1). Whether
a transfer of funds to a closely held corporation constitutes
debt or equity is determined based on all relevant facts and
circumstances. The Court of Appeals for the Eleventh Circuit, to
which an appeal of this case would generally lie, applies a
nonexclusive 13-factor test as enunciated in Estate of Mixon v.
United States, 464 F.2d 394, 402 (5th Cir. 1972). See In re
Lane, 742 F.2d 1311, 1314-1315 (11th Cir. 1984); Stinnett’s
Pontiac Serv., Inc. v. Commissioner, 730 F.2d 634, 638 (11th Cir.
1984), affg. T.C. Memo. 1982-314. The Mixon factors are:
(1) The names given to certificates evidencing the indebtedness;
(2) the presence or absence of a fixed maturity date; (3) the
source of payments; (4) the right to enforce payment; (5) the
effect on participation in management; (6) the status of the
contribution in relation to regular corporate creditors; (7) the
parties’ intent; (8) "thin" or adequate capitalization;
(9) identity of interest between creditor and stockholder;
(10) the source of interest payments; (11) the ability of the
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