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participation in management as a result of the advances, status
of the advances in relation to regular corporate creditors,
intent of the parties, identity of interest between creditor and
stockholder, thinness of capital structure in relation to debt,
ability of corporation to obtain credit from outside sources, use
to which advances were put, failure of debtor to repay, and the
risk involved in making advances. Dixie Dairies Corp. v.
Commissioner, 74 T.C. 476, 493 (1980).
The identified factors are not equally significant, and no
single factor is determinative or relevant in each case. Id. at
493-494. This Court has stated that the ultimate question is
whether there was “a genuine intention to create a debt, with a
reasonable expectation of repayment, and did that intention
comport with the economic reality of creating a debtor-creditor
relationship?” Litton Bus. Sys., Inc. v. Commissioner, 61 T.C.
367, 377 (1973). However, without evidence substantiating the
existence of a bona fide debt, a mere declaration of intent is
not determinative. Cordes v. Commissioner, T.C. Memo. 1994-377.
Petitioner contends that, during the years in issue, Mr.
Henderson deposited moneys in the corporation which were loans.
Mr. Smith testified that the alleged deposits made by Mr.
Henderson to petitioner totaled $98,894 in 1995 and $170,000 in
1996. Petitioner had two corporate receipts totaling $8,000 and
a promissory note executed between petitioner and Mr. Henderson
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