Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: CheetahChrome One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124138  
Subject: Re: Accrued Interest Date: 6/4/2001 10:15 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
> Subject: Re: Accrued Interest
> Author: gailkay Date: 6/3/01 9:16 PM Number: 51455

> Generally, individuals are cash-basis taxpayers - which means that
> they recognize income when received and expenses when paid. However,
> what does "received" mean? We could spend days discussing
> constructive receipt issues.

Gee ... that sounds like a fun way to spend a few days :-)

> When you say the interest is not payable until you call the loan -
> could you demand the interest earlier?

I cannot get the interest without calling the entire loan (which I haevn't done).

> Are you an owner, or related to someone who owns the stock, or
> do you own a company that owns stock in the company you loaned
> money to?

No, though the loan is convertible to stock under certain conditions (which have not yet been met).

> Now, aren't you sorry you asked?

Well, I do need to know.

> Generally, tho, the answer to your question in most cases would
> be no, you recognize the interest income in the tax year in which
> it is actually paid.

THis was also my initial thought. But then I thought about the fact that certain kinds of investments (e.g., zero coupun bonds?) require one to declare accrued interest each year.

> Gail

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Macro Economics

Looking at Oil and Gas
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.