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LSDefine

Simple English definitions for legal terms

imputed interest

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A quick definition of imputed interest:

Imputed interest is when someone is charged interest on a loan even if they didn't actually pay any interest. It's like pretending they paid interest and then charging them for it. It's not fair, but sometimes it happens.

A more thorough explanation:

Imputed interest is a type of interest that is not actually paid, but is instead calculated and added to the cost of a loan or investment. This is done to account for the time value of money and to ensure that the lender or investor is compensated for the use of their funds.

For example, let's say that you borrow $10,000 from a friend and agree to pay it back in one year with no interest. However, if the prevailing interest rate is 5%, your friend could impute interest of $500 (5% of $10,000) and add it to the loan amount. This means that you would actually owe $10,500 at the end of the year.

Another example of imputed interest is when a company issues bonds with a below-market interest rate. In this case, the IRS may impute additional interest income to the bondholders to ensure that they are paying taxes on the full value of the investment.

Overall, imputed interest is a way to account for the time value of money and ensure that lenders and investors are fairly compensated for the use of their funds.

imputed income | imputed knowledge

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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