schirallicpa Posted March 30 Report Share Posted March 30 In the real world men make agreements to pay in round dollars. So - on a 2 million dollar sale of assets, my client is receiving 48000 per year for 4 years, and then will receive the remaining 1808000. The seller and buyer are both reducing the debt by the 48000. Then the IRS says - no - that includes some amount of interest. So - I feel like I need to reduce the principle being applied to the 6252 and report some interest. But is that common? I inherited this one, and the previous preparer did not recognize any interest. I'm in the woulda, shoulda, coulda mode. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 30 Report Share Posted March 30 Under imputed interest rules, the $ 2 Million would be the combined total of principle and interest payments for the contract using the AFR at the time the contract was initiated. 2 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted March 30 Author Report Share Posted March 30 I'm thankful for this forum. Sometimes you just need to talk things out. My dogs aren't very good at tax stuff. Although they do like to take the paper roll hanging to the floor from the calulator. 1 4 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 31 Report Share Posted March 31 On 3/30/2024 at 3:39 PM, schirallicpa said: I'm thankful for this forum. Sometimes you just need to talk things out. My dogs aren't very good at tax stuff. Although they do like to take the paper roll hanging to the floor from the calulator. So true. I doubt that I could function without at least one visit here per day. So much knowledge here and people to help each other see the trees for the forest. Grateful and Happy Easter to all of us who are working today and those of us who aren't. 3 Quote Link to comment Share on other sites More sharing options...
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