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Note Valuations to the Fore in 2024?

Shift in interest rates provides impetus to discounting promissory notes.

Has your client ever received an audit notice on the valuation of a promissory note? If yes, the initial Internal Revenue Service position may often be paraphrased as: “Unless the borrower is insolvent and the note has inadequate collateral, the note value is its face value.” But what if the interest rate is inadequate? Would a willing buyer pay full face value for such a note? 

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