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nature of transfers of funds to closely held corporations, as
follows: (1) The names given to the documents that would be
evidence of the purported loans; (2) the presence or absence of
fixed maturity dates with regard to the purported loans; (3) the
likely source of any repayments; (4) whether the taxpayers could
or would enforce repayment of the transfers; (5) whether the
taxpayers participated in the management of the corporations as a
result of the transfers; (6) whether the taxpayers subordinated
their purported loans to the loans of the corporations’
creditors; (7) the intent of the taxpayers and the corporations;
(8) whether the taxpayers who are claiming creditor status were
also shareholders of the corporations; (9) the capitalization of
the corporations; (10) the ability of the corporations to obtain
financing from outside sources at the time of the transfers;
(11) how the funds transferred were used by the corporations;
(12) the failure of the corporations to repay; and (13) the risk
involved in making the transfers. Calumet Indus., Inc. v.
Commissioner, 95 T.C. 257, 285 (1990); Dixie Dairies Corp. v.
Commissioner, supra at 493.
The above factors serve only as aids in evaluating whether
taxpayers’ transfers of funds to a closely held corporation
should be regarded as risk capital subject to the financial
success of the corporation or as bona fide loans made to the
corporation. Fin Hay Realty Co. v. United States, 398 F.2d 694,
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