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with the numerous Standing Pretrial Orders that the Court had
issued in these cases. We sustained respondent’s objections to
those documents and summaries of those documents offered in
evidence by petitioners. There was no excuse for the belated
tender of documents, and we reaffirm our rulings on respondent’s
objections. The documents not received in evidence have not been
considered in our findings of fact.
Issue #1–-Transfers From PK Ventures to the Zephyr Purchasers
Whether a withdrawal of funds from a business by one of its
owners or an advance made to a business by one of its owners
creates a true debtor-creditor relationship is a factual question
to be decided based on all of the relevant facts and
circumstances. See Haag v. Commissioner, 88 T.C. 604, 615
(1987), affd. without published opinion 855 F.2d 855 (8th Cir.
1988); see also Haber v. Commissioner, 52 T.C. 255, 266 (1969),
affd. 422 F.2d 198 (5th Cir. 1970); Roschuni v. Commissioner, 29
T.C. 1193, 1201-1202 (1958), affd. 271 F.2d 267 (5th Cir. 1959).
For disbursements to constitute bona fide loans, there must have
been, at the time that the funds were transferred, 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. Haag v. Commissioner, supra at
615-616; see also Haber v. Commissioner, supra at 266. Direct
evidence of a taxpayer’s state of mind is generally unavailable,
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