imputed interest

Definition

Interest considered by the IRS for tax purposes to have been paid, even if no interest was actually paid.

Use imputed interest in a sentence

It was imputed interest and that made me angry and I did not know how to deal with it at all.

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Though the note received upon sale of the property reflected an zero interest rate the IRS requires an imputed interest rate resulting in the reallocation of a portion of the proceeds from capital gains to ordinary income.

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In a repurchase agreement, the price differential between the money extended against collateral and the price at which the collateral is repurchased represents imputed interest.

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