Herrera v. Comr., No. 13-60018, 2013 U.S. App. LEXIS 22750 (5th Cir. Nov. 11, 2013), aff'g., T.C. Memo. 2012-308

(petitioner formed corporation to perform engineering consulting work and steel fabrication; steel fabrication business ultimately transferred into LLC and businesses separated; corporation used advanced funds from LLC and bank loans to continue operations; LLC claimed bad debt deduction on Form 1065 for 2006 and 2007 for amounts not repaid by corporation; IRS disallowed deductions on basis that they weren't bona fide debt; court agreed with IRS - advances not bona fide debt because no use of promissory note, lack of definitive maturity date, lack of repayment schedule, no collateral pledged and no interest paid or accrued; Tax Court decision affirmed on appeal)