Imputed interest

imputed interest
An interest rate that is not explicit. For example, if a business lends its majority owner $100,000 at 0% interest, the IRS might determine that a fair interest rate would be 6% and not 0%. The IRS will impute interest of 6%.

Imputed Interest
Investment Dictionary:
Imputed Interest
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IMPUTED INTEREST - 1. Interest which is deemed to have been charged on a loan by a court. 2. Used in ac...
IMPUTED VALUE - Refers to the value of an asset, service, or company that is not physically recorded in...

Imputed Interest
If no interest or an unrealistic amount of interest is charged in a salve involving certain kinds of deferred payments, then the transaction will be treated as if the realistic rate of interest had been used.

Imputed Interest
Interest which is not actually paid to bond holders but which the IRS may tax anyway. Common with zero coupon bond interest.

Imputed interest
Imputed interest is interest you are assumed to have collected even if that interest was not paid.

Imputed interest. Interest that is considered to have been paid for tax purposes even though no actual payment was paid. A zero coupon bond, for instance, has imputed annual interest that the IRS requires the bondholder to report.

Imputed interest
Used in accounting to refer to interest that has effectively been paid to a bondholder, even though no money has actually been paid.
Imputed value ...

Imputed Interest
Interest that is considered to have been paid although no actual payment was made. A zero coupon bond, for instance, has imputed annual interest that the IRS requires the bondholder to report.
See: Zero Coupon Security ...

Imputed Interest Reporting
CCC reports the gross proceeds of a tobacco quota contract on Form 1099-S, 'Proceeds from Real Estate Transactions' in the year that the contract was entered into.

Imputed interest. Interest you are considered to have earned -- and therefore owe tax on -- if you make a below-market-rate loan. The term is also used to refer to the interest income you must report on taxable zero-coupon bonds.

Imputed interest is an interest rate that is estimated and assigned based on the internal rate of return if an effective interest rate is not evident or determinable from other factors in a transaction.
“In the money” ...

Imputed Interest
A term used to describe interest that is considered to be paid, even through no interest payment has been made.

IMPUTED INTEREST Implied interest. In a mortgage that states an insufficient interest rate, tax law will impute a higher rate and a lower principal, which will increase taxes on the receipt of payment.

If an employee has outstanding loans over $10,000 and you are not charging interest, or you are charging interest at a rate below the applicable federal rate, you may have to report "imputed interest" income at the federal rate, ...

Zero-coupon bonds are a popular type of original issue discount security. The drawback, from the investor's perspective is that the imputed interest that accumulates is taxable each year even though that interest has not been paid.

Arrangement by which investors who receive a dividend also receive a tax credit for corporate taxes that the firm has paid.
Imputed interest ...

See also 1099, 401(k) plan, amended return, audit, backup withholding, deficiency, determination letter, imputed interest, itemized deduction, over-55 home sale exemption, revenue ruling, standard mileage rate, wash sale rule.

Under Internal Revenue Service rules, however, TIGER holders owe income taxes on the imputed interest they would have earned had the bond been a full coupon bond.

See also: Expense, Compensation, Saving, Values, Banks