PROBLEM: Forget about the formalities of debt: there was no written note, no interest, no repayment schedule, nothing. All that existed was a bookkeeping entry.
We recognize that Mr. Singer’s advances have some of the characteristics of equity – the lack of a promissory note, the lack of a definitive maturity date, and the lack of a repayment schedule …”
… but we do not believe those factors outweigh the evidence of intent.”
… because intent of parties to create [a] loan was overwhelming and outweighed other factors.”
However, we cannot find that all of the advances were loans.”
While we believe that Mr. Singer had a reasonable expectation of repayment for advances made between 2006 and 2008, we do not find that a similarly reasonable expectation of repayment existed for later advances.”
After 2008 the only source of capital was from Mr. Singer’s family and Mr. Singer’s personal credit cards.”
No reasonable creditor would lend to petitioner.”