I received a zero interest loan as part of an employment package. I understand that I have to report the imputed interest for this on my income tax.
I have found an amortization schedule that allows me to enter the loan information as follows
$200,000 loan
130 bi-weekly payments of $461.53 and a balloon payment of $140,001.10
I entered an annual rate of .88% based on the AFR information below and
from what I have read it has to be compounded semi-annually.
Thank you
I have found an amortization schedule that allows me to enter the loan information as follows
$200,000 loan
130 bi-weekly payments of $461.53 and a balloon payment of $140,001.10
I entered an annual rate of .88% based on the AFR information below and
from what I have read it has to be compounded semi-annually.
The loan originated in Aug 2012. The AFR for a mid-term loan for the month of Aug is and the two previous months here as follows:
Jun 1.07%
Jul .92%
Aug .88%
Am I correct that if I take the amount of interest that this schedule shows for 2012 that is what I would use for my imputed interest?Jun 1.07%
Jul .92%
Aug .88%
Thank you