Interest 2022 ON DEMAND

Overview

This course focuses on tax issues affecting the treatment of interest and debt. It covers the definition of bona fide debt, the impact of related parties, the avoidance of equity and lease characterization, and deductible versus non-deductible interest factors. Sticky cross issues such as the impact of at-risk rules under Section 465, passive loss restrictions of Section 469, and below-market-rate loans under Section 7278 are examined. In addition, the accounting method treatment of interest, points, pre-paid interest, and discounted loans are reviewed. Particular attention is given to imputed interest and original issue discount.

Highlights

Indebtedness. Deductible interest and mortgage interest. Investment interest. Nondeductible interest. Personal interest and capitalized interest. At-risk rules. Passive activity limitations. Below-market interest rate loans. Imputed interest on sales. Original issue discount (OID).

Prerequisites

None.

Designed For

CPAs and other tax professionals.

Objectives

Determine “interest” and select how much is tax-deductible under Section 163. Identify deductible interest and special calculation concepts and procedures. Recognize nondeductible interest types and provisions that, through restriction, create nondeductible interest. Identify interest under the cash or accrual method recognizing the special elections applicable to and treatment of carrying charges under Section 266, below-market loans, and imputed interest.

Preparation

None.

Notice

None.