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unstated interest |
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unstated interest See imputed interest. Unstated Interest When a taxpayer sells property on the installment basis, the tax code requires that interest at the "applicable federal rate" must be included in the contract. If interest is not charged or is charged at a rate below the required rate, a portion of the amount that would otherwise be treated as a principal payment must be treated as interest. This amount is called unstated interest. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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