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market gift loan subject to section 7872. See id.; cf. Blackburn
v. Commissioner, 20 T.C. 204 (1953).
Petitioners correctly observe that section 7872(f)(8)
provides that section 7872 does not apply to any loan to which
section 483 or 1274 applies. This prohibition is not applicable
to the case at hand. Technically, neither section 483 nor
section 1274 applies to the deferred payment arrangement, because
the buy-sell agreements required payment to be made within 6
months after the notice dates. See sec. 483(c)(1) (sec. 483 does
not apply where no payment is due more than 1 year after the sale
or exchange); sec. 1274(c)(1) (sec. 1274 only applies where at
least one payment is due more than 6 months after the sale or
exchange).
Petitioners also observe that certain proposed section 7872
regulations state that section 7872 does not apply to any loan
given in consideration for the sale or exchange of property,
within the meaning of sections 483(c)(1) and 1274(c)(1), even if
the rules of those sections do not technically apply by reason of
safe harbors or other exceptions. See sec. 1.7872-2, Proposed
Income Tax Regs., 50 Fed. Reg. 33553, 33557 (Aug. 20, 1985). We
note, however, that although proposed regulations constitute a
body of informed judgment on which courts may draw for guidance,
see Frazee v. Commissioner, supra at 582, we accord them no more
weight than a litigating position, see KTA-Tator, Inc. v.
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