Shareholder Loans and Constructive Dividends

I. What is a bona fide debt?
     A. When was the loan made?
     B. Was there genuine intent to repay the loan?
     C. Is there a loan document with stated interest?
     D. Have there been payments?

II. Considerations-Loan v. Dividend(Intent)
     1. To what extent does the shareholder control the corporation?
a. Control of the amount of Profits
     2. Was any Security given?
     3. Is the shareholder in a position to repay the loan?
     4. Earnings & Profits of the Corporation.
          a. Constructive Dividend or Return of Capital or Capital Gain?
     5. Documentation of Indebtedness
     6. Repayment Schedule &/or Repayments
     7. Is there a set Maturity Date?
     8. Has Interest been charged by the Corporation?
     9. What was the Rate of Interest charged?Was there authorization in the Minute Book?
   10. The use to which the funds were put.
   11. What was the amount of the distribution and were they steadily increasing?