J. Michael Shedd and Marita Shedd - Page 9




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          1972).  The existence of a note, however, is not in and of itself           
          conclusive.  An unsecured note, with no payments made thereon,              
          weighs towards equity.  See Stinnett’s Pontiac Serv., Inc. v.               
          Commissioner, 730 F.2d 634 (11th Cir. 1984), affg. T.C. Memo.               
          1982-314; Estate of Van Anda v. Commissioner, 12 T.C. 1158, 1162            
          (1949), affd. per curiam 192 F.2d 391 (2d Cir. 1951).                       
               Here, notes were signed, but they were not signed until the            
          end of the fiscal year in which funds had been advanced.                    
          Further, the notes were executed in amounts that were less than             
          the amount that had been advanced.  Furthermore, the evidence               
          shows that no payments were ever made on these unsecured                    
          advances.  When a transaction involves a closely held                       
          corporation, the forms and labels assigned to a transaction may             
          mean little due to the parties’ ability to mold the transaction             
          to their will.  See Anchor Natl. Life Ins. Co. v. Commissioner,             
          93 T.C. 382, 407 (1989).  For these reasons, we find that the               
          notes have only limited probative value in our evaluation of                
          whether the advances were bona fide indebtedness.                           


          2.  Presence or Absence of Fixed Maturity Date and Schedule of              
          Payments                                                                    
               Here, no schedule of payments or due date was established.             
          Petitioners’ claim that demand notes weigh in their favor, but              








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