Imputed Interest Question

Mar 3, 2013
Reaction score
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.

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?

Thank you


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question