Tax On Interest
Is interest on a loan where the interest is paid in a lump sum taxed at the same rate as interest that is paid on a regular basis? i.e. $300,000 loan at 7% interest paid in 24 months taxed the same as amortized interest)?
Thanks in advance
Thanks in advance
Comments(0)
Interest income is taxed in the year it is received. Does not matter if it is received in a lump sum or installments.
If you are going to give your commision to someone in the future you should consider keeping the tax portion of it, too late for the previous one!
Update - I was able to account for the commission - my CPA completed all forms and scolded me for not passing this one through him. I guess in the future I wont forget - we learn as we live..
Thanks.
Scott