- 4 - Calumet Indus., Inc. v. Commissioner, supra at 285-286 (quoting Fin Hay Realty Co. v. United States, 398 F.2d 694, 697 (3d Cir. 1968)). The names given to documents evidencing the indebtedness, the presence or absence of a fixed maturity date, the source of repayments, the right to enforce repayment of the advance, the intent of the parties, the failure of the corporation to repay on the due date, and other factors are considered to determine whether a payment is a contribution to capital or bona fide debt. See Tex. Farm Bureau v. United States, 725 F.2d 307 (5th Cir. 1984); Am. Offshore, Inc. v. Commissioner, 97 T.C. 579, 602-606 (1991). No one factor is controlling, and the determination of whether there is a loan or a contribution to capital is a question of fact which must be decided on the basis of all the relevant facts and circumstances. Calumet Indus., Inc. v. Commissioner, supra at 285. The expenses paid on behalf of SEI were not bona fide loans.2 Mr. Bynum and SEI did not have a debtor-creditor relationship. Mr. Bynum certainly paid and substantiated a wide array of business expenses, but these payments were not loans to 2 Pursuant to sec. 7491(a), petitioners have the burden of proof unless they introduce credible evidence relating to the issue that would shift the burden to respondent. See Rule 142(a). Our conclusions, however, are based on a preponderance of the evidence, and thus the allocation of the burden of proof is immaterial. See Martin Ice Cream Co. v. Commissioner, 110 T.C. 189, 210 n.16 (1998).Page: Previous 1 2 3 4 5 6 NextLast modified: March 27, 2008