What UNSTATED INTEREST means: When a taxpayer sells property on the installment basis, the tax code requires that interest at the "applicable federal rate" must be included in the contract. If interest is not charged or is charged at a rate below the required rate, a portion of the amount that would otherwise be treated as a principal payment must be treated as interest. This amount is called unstated interest.
- Definition Unadjusted Basis:
- Dictionary basis is the basis of property that would be used to figure a gain on the sale of the property, but without reduction for any depreciation deductions. To get the unadjusted basis, the original basis unstated interest definition.
- Definition Unearned Income:
- Dictionary other than that received for services performed (earned income). Unearned income includes money received for the investment of money or other property, such as interest, dividends, and royalties. It unstated interest explain.
How works Unstated Interest meaning in Tax definitions U .
