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$2,086 toward the price of the furniture. Petitioner argues that
the amounts Taxman paid for his furniture were loans to him.
Petitioner claims that the loans were recorded on the “loan
schedule as a note receivable” and the balance sheet on Taxman’s
1991 corporate return. Respondent entered into the record a
document that appears to be a schedule of loans from Taxman and
WFIC to petitioner. For 1991, the schedule shows no loans from
Taxman to petitioner and $29,800 in loans from WFIC to
petitioner. Taxman’s 1991 corporate tax return does not reflect
any new loans to petitioner in 1991. WFIC’s 1991 corporate
return lists receivables of $29,800, and a purported schedule of
loans from WFIC to Taxman also states that WFIC lent Taxman
$29,800 in 1991. Taxman’s balance sheets, filed with its tax
returns for 1991 and 1992, do not list these amounts as
liabilities.
Whether a withdrawal of funds from a corporation creates a
true debtor-creditor relationship is a factual question to be
decided on the basis of all of the relevant facts and
circumstances. Haag v. Commissioner, 88 T.C. at 615. For
disbursements to constitute true loans, there must have been an
unconditional obligation on the part of the transferee to repay
the money and an unconditional intention on the part of the
transferor to secure repayment at the time that the funds were
transferred. Id. at 615-616; see also Haber v. Commissioner, 52
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