Imputed interest rate

Jan 31, 2009 5:55 pm

For those that have made a move lately or signed a retention deal what was the imputed interest rate on your forgivable loan? Please give the firm too.



Thanks.



(usually firm pays the interest but the FA has a taxable obligation for that interest in that year as well)

Jan 31, 2009 8:40 pm

5%

Feb 1, 2009 3:03 pm

what firm?

Feb 2, 2009 4:02 am

BAI is 5%

Feb 2, 2009 4:05 am

BAI makes the FA write a check every year over 6 years, then they run it through payroll, grossed up with the 5 % of the remaining “loan” shown as imputed income.  Then it all hits FIT, State, SS and Medicare.