Apr 1, 2022 · One way to handle this is to reduce the cost basis by the interest shortfall amount, which in this case will turn the gain into a loss. Is this correct? If not, how should it be handled? …

Mar 14, 2017 · I keep seeing numbers on 1099 reports for "Interest Shortfall on Contingent Payment Debt" As far as my research can tell me this relates to OID. Is this just an amount …

The debt instrument provides for a payment of principal at maturity of $5,000,000 and a contingent payment of interest on December 31 of each year equal to a fixed percentage of the gross …

U.S. source interest payments, 6 parties must also consider whether a contingent interest provision could impact the ability of a lender to claim the “portfolio interest” exemption under …

Mar 8, 2024 · An interest shortfall, also known as an accrued interest shortfall, refers to the situation where the accrued interest due on a debt payment exceeds the amount actually paid …

Mar 21, 2019 · “ Under IRS regulations, gain (if any) on disposition of a contingent payment debt instrument is usually treated as ordinary income. Any loss, to the extent that the loss is less …

My aunt lost her tax preparer and I thought her return would be easy and offered to help. Her 1099 from a local financial place has a redeemed bond for the period and a related interest shortfall …

May 2, 2024 · Explore the intricate tax treatment of contingent interest and convertible debt in cross-border transactions under the Internal Revenue Code.

method, Corporation X projects payments of contingent interest and a payment at maturity (based on a projected exercise of the conversion privilege) in an amount sufficient to cause the yield …

Each payment of interest is a contingent payment. Accordingly, under paragraph (a) of this section, for purposes of applying section 483 to the debt instrument, the right to the …

A contingency relating to the amount of a payment is incidental if, under all reasonably expected market conditions, the potential amount of the payment is insignificant relative to the total …

In summary, the CPDI Regulations have held up reasonably well to a decade and a half of use in accounting for debt instruments subject to contingencies. However, some uncertainties exist, …

Sep 1, 2016 · The contingent debt is separated into two pieces: (1) principal that is noncontingent, and (2) principal that is contingent. Interest expense then is computed separately on each …

Aug 2, 2019 · For the past 4 years I was paying original issue discount interest (phantom interest) from form 1099-OID (about $2000 total for the 4 years total.) It turns out that the market index …

Mar 3, 2025 · IDR programs — which include Income-Based Repayment, Income-Contingent Repayment, and Pay As You Earn, as well as the SAVE plan — all tie a borrower’s monthly …