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corporate creditors; (7) the intent of the parties; (8) “thin” or
adequate capitalization; (9) the identity of interest between
creditor and shareholder; (10) the source of interest payments;
(11) the ability to obtain loans from outside lending
institutions; (12) the use of funds by the corporation; and (13)
the failure of the corporation to repay on the due date. Am.
Offshore, Inc. v. Commissioner, 97 T.C. 579, 602-606 (1991); see
also Tex. Farm Bureau v. United States, 725 F.2d 307, 311 (5th
Cir. 1984); Calumet Indus., Inc. v. Commissioner, supra at 285;
Dixie Dairies Corp. v. Commissioner, supra at 493.
The above factors serve only as aids in evaluating whether a
taxpayer’s transfers of funds to a closely held corporation
should be considered loans or capital investments. Fin Hay
Realty Co. v. United States, 398 F.2d 694, 697 (3d Cir. 1968).
No single factor is controlling. Moreover, because of the myriad
factual circumstances under which debt-equity questions can
arise, all of the factors are not relevant to each case. Dixie
Dairies v. Commissioner, supra at 493. Our analysis of the
factors is set forth below.
I. Applying the Factors
A. Names Given To the Documents
The issuance of a stock certificate indicates a capital
contribution; the issuance of a note is indicative of bona fide
debt. Montclair, Inc. v. Commissioner, 318 F.2d 38 (5th Cir.
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