Larry M. Levy and Diane Levy - Page 10

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          consideration of all of the circumstances.  See Dixie Dairies               
          Corp. v. Commissioner, supra at 493.                                        
               All of the interest on petitioners’ advances was accrued,              
          not paid, and, with the exception of the note, there was no fixed           
          maturity date for repayment of the advances.  See A. R. Lantz Co.           
          v. United States, 424 F.2d 1330, 1333 (9th Cir. 1970) (concluding           
          that advances were an equity investment in similar                          
          circumstances).  Further, petitioners agreed to subordinate their           
          interest to those of Republic Bank and Betty Jo Byers, whose debt           
          they had personally guaranteed, see O.H. Kruse Grain & Milling v.           
          Commissioner, 279 F.2d 123, 126 (9th Cir. 1960) (stating that               
          subordination to later incurred debt is an indication of equity             
          rather than debt), affg. T.C. Memo. 1959-110; made many advances            
          when JTFJ had no working capital, see Datamation Servs., Inc. v.            
          Commissioner, T.C. Memo. 1976-252 (stating that a transaction               
          appears to be a contribution to capital where advances are made             
          to provide working capital, and repayment depends solely on the             
          borrower’s success); and participated in JTFJ’s management, see             
          O.H. Kruse Grain & Milling v. Commissioner, supra at 126 (stating           
          that where the taxpayer participates in management, advances are            
          more likely capital contributions than debt).  Moreover,                    
          petitioners made the advances in exchange for the future receipt            
          of a 50-percent interest in JTFJ’s profits.  See Aqualane Shores,           
          Inc. v. Commissioner, 269 F.2d 116, 119 (5th Cir. 1959) (stating            

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