Antonio and Joyce Rosario - Page 6

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          petitioner contends that the amended agreement and the hospital’s           
          proceedings against him in a U.S. District Court to collect                 
          repayment of the guarantee payments received by him should                  
          eliminate “any doubt regarding the treatment of the monies                  
               Respondent argues that amounts paid to petitioner by the               
          hospital constituted gross income in 1993.  Respondent contends             
          that nothing in the record evidences that, at the time petitioner           
          entered into the practice agreement, petitioner intended to repay           
          the guarantee payments received.  Respondent also argues that the           
          practice agreement did not contain an unconditional obligation to           
          repay because it stated that any terms regarding the payback of a           
          balance due would be mutually agreed upon at the expiration of              
          the term.                                                                   
               Gross income includes all income from whatever source                  
          derived, encompassing all “accessions to wealth, clearly                    
          realized, and over which the taxpayers have complete dominion”.             
          Sec. 61(a); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431           
          (1955).  Generally, proceeds of a loan do not constitute income             
          to a borrower because the benefit is offset by an obligation to             
          repay.  United States v. Rochelle, 384 F.2d 748, 751 (5th Cir.              
          1967); Arlen v. Commissioner, 48 T.C. 640, 648 (1967).  Whether a           
          particular transaction actually constitutes a loan, however, is             

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