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be presumed to be gifts. The presumption may be rebutted by an
affirmative showing that, at the time of the transaction, there
was a real expectation of repayment and a real intent to enforce
the collection of the asserted debt. See Estate of Van Anda v.
Commissioner, 12 T.C. 1158 (1949), affd. per curiam 192 F.2d 391
(2d Cir. 1951).
Some of the factors we consider when determining whether
there is a debtor-creditor relationship with a reasonable
expectation of repayment are whether: (1) There is a note or
other evidence of indebtedness; (2) interest is charged; (3)
there is a fixed schedule for repayment; (4) security or
collateral is requested; (5) there is any written loan agreement;
(6) a demand for repayment has been made; (7) the parties’
records reflect the transaction as a loan; (8) repayments have
been made; and (9) the borrower was solvent at the time of the
loan. See Hunt v. Commissioner, T.C. Memo. 1989-335.
The case at hand presents enough of the above indicia to
satisfy us that there was a debtor-creditor relationship. The
Atascadero loan is evidenced by a note executed by Stephanie and
David in favor of petitioner; the note was secured by a second
deed of trust to the Atascadero property; and interest was
charged at a rate well above the applicable Federal rate.2 See
2In January 1990, when Stephanie and David received the
first disbursement of funds, the applicable Federal rate was 7.90
percent for short-term loans with an annual period of
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