Antonio and Joyce Rosario - Page 7

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          to be determined upon consideration of all the facts.  Fisher v.            
          Commissioner, 54 T.C. 905, 909 (1970).                                      
               For a payment to constitute a loan, at the time the payments           
          are received, the recipient must intend to repay the amounts and            
          the transferor must intend to enforce payment.  Haag v.                     
          Commissioner, 88 T.C. 604, 615 (1987), affd. without published              
          opinion 855 F.2d 855 (8th Cir. 1988); Beaver v. Commissioner, 55            
          T.C. 85, 91 (1970).  Further, the obligation to repay must be               
          unconditional and not contingent on a future event.  United                 
          States v. Henderson, 375 F.2d 36, 39 (5th Cir. 1967); Bouchard v.           
          Commissioner, 229 F.2d 703 (7th Cir. 1956), affg. T.C. Memo.                
          1954-243; Haag v. Commissioner, supra at 615.                               
               Intent is a state of mind rarely susceptible of proof by               
          direct evidence; therefore, we have generally considered a number           
          of criteria for the purpose of determining the intent of the                
          parties at the time the payments were made.  Dean v.                        
          Commissioner, 57 T.C. 32, 43 (1971).  No single factor, standing            
          alone, is controlling, but each factor is considered with all the           
          facts and circumstances present.  Id. at 44.                                
               On the basis of the evidence in the record, we find that the           
          guarantee payments advanced to petitioner constituted a loan and            
          are not taxable income.                                                     

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