William H. Breucher III - Page 14

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          liquidate the loan.’”  Williams v. Commissioner, supra at 1035              
          (quoting Dolese v. United States, 605 F.2d 1146, 1153 (10th Cir.            
          1979)).  None of these factors, standing alone, is determinative            
          of the issue before us.  Alterman Foods, Inc. v. United States,             
          supra at 876-877 n.6.  However, these factors are useful in                 
          determining whether there is a true intention to repay.                     
               As previously stated, Mr. Bruecher is the sole shareholder             
          of Bruecher Foundation.  He actively directs and operates                   
          Bruecher Foundation and makes the decisions as to the timing,               
          amounts, and uses of the funds advanced by Bruecher Foundation.             
               Prior to 1998, Bruecher Foundation had paid Mr. Bruecher               
          neither a salary nor a dividend.  Mr. Bruecher first received a             
          salary early in 1998 when his accountant reclassified about                 
          $114,000 of “advances” as wages.  It is clear that Mr. Bruecher             
          used Bruecher Foundation’s bank account to pay his own personal             
          expenses and in certain instances expenses related to his                   
          Schedule C “landscaping/foundation” business.  In fact, for tax             
          years 1998 and 1999, Mr. Bruecher maintained a business banking             
          account for his Schedule C business, which was separate from                
          Bruecher Foundation’s banking account.  He did not maintain his             
          own separate personal bank account.                                         
               There were no written agreements such as promissory notes              
          between Mr. Bruecher and Bruecher Foundation concerning the                 
          “advances” to Mr. Bruecher.  Mr. Bruecher did not give any                  

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