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agreement with the Gownis as to the time of repayment or the
interest to be paid.
Third, whether the amounts contributed by the Gownis to Mina
of Forest City and Bishoy were treated as loans or as
contributions to capital by the corporations is not established
because the corporate books of Mina of Forest City and Bishoy
were never offered into evidence.
Fourth, the Gownis have failed to establish the amounts of
the allegedly outstanding loans due to them from Mina of Forest
City and Bishoy for 1999. Petitioners contend that the
Schedules L, Balance Sheets per Books, attached to the Forms
1120S filed by Mina of Forest City in 1998 and Bishoy in 1999
support the conclusion that the Gownis made loans to these
corporations. While the Schedules L indicate that there are
loans from shareholders outstanding for Mina of Forest City and
Bishoy, they do not establish the amount of the outstanding
shareholder loans due to the Gownis for 1999. (Moreover, on
Mr. Gowni’s Schedule K-1, Shareholder’s Share of Income, Credits,
Deductions, etc., that is attached to Bishoy’s Form 1120S for
1999, there is no amount of repayment listed on line 21, “Amount
of loan repayments for ‘Loans from Shareholders’”.) The schedule
of purported loans prepared by Mr. Gowni is also insufficient to
establish the outstanding shareholder loan amounts due to the
Gownis from Mina of Forest City and Bishoy for 1999 because it
details only the amounts that the Gownis paid to Mina of Forest
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