One of the more confusing aspects of taxation is the federal mandate for a business to charge interest on loans to or from its owners. This is primarily targeted at corporation/shareholder loans but can affect other business entities as well. Given current interest rates this requirement seems both senseless and immaterial. However, understanding these self-charged interest requirements requires a trip back in time to their enactment.
- Sections 1202, 1244 & Installment Sales On-Demand
- Sections 338(h)(10), 336(e), & S Corporations On-Demand
- Is it a trade or business? Or a hobby or investment?
- Related Party Notes and Transactions: Section 267, Imputed Interest, Disallowed Losses, and Like-Kind Exchanges
- Important Filing Deadline Information for PFC Clients