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relationship.” Fin Hay Realty Co. v. United States, 398 F.2d
694, 697 (3d Cir. 1968).
Before we apply the factors, however, we must first identify
the relevant date that governs our analysis. Ordinarily we must
examine an advance as of the date it is made to decide whether it
qualifies as bona fide debt. When an advance takes the form of a
payment required by a guaranty, however, we must examine the
circumstances existing on the date the guaranty is given. Sec.
1.166-9(c), Income Tax Regs. Petitioner contends that we must
divide the amounts recorded in the intercompany account into two
categories–-amounts reducing G�nther’s guaranteed bank loan
balances and amounts paid on other obligations. Petitioner
asserts that all amounts paid towards the bank loans were
payments required by Flint’s guaranties and must be analyzed as
of the dates of the guaranties. Respondent contends that none of
the payments applied to G�nther’s bank loans were payments that
Flint was required to make under its guaranties, and that all of
the advances, including those applied to the guaranteed bank
loans, must therefore be analyzed as of the dates the payments
were made.
Petitioner did not prove that any of the banks declared a
default on any of G�nther’s guaranteed bank loans or demanded
that petitioner pay under the guaranties, or that petitioner
actually made guaranty payments and, if so, in what amount. We
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