A method of determining the true cost of indebtedness by applying a uniform rate of interest on the unpaid balance of loan over the complete term of the loan based on the loan amount and the repayment schedule established in the loan agreement.
Related information about economic accrual of interest:
- What is economic accrual of interest? definition and meaning
Definition of economic accrual of interest: A method of determining the true cost of indebtedness by applying a uniform rate of interest on the unpaid balance of ...
- accrual and - American University Washington College of Law
A. Revenue Ruling 83-84 and the Economic Accrual of Interest. Revenue Ruling 83-8484 sets out the Service's current position re- garding the proper method of ...
- Interest, Economic Accrual of: Definition from Answers.com
... any prior accrued but unpaid interest. An accrual basis taxpayer is required to use the economic accrual of interest for calculating the interest deduction .
- New York City Bar Association
Jul 23, 2008 ... interest with respect to indebtedness—accrual of interest, economic accrual of interest and market discount rules-all involve methods of ...
- 882 F2d 820 Prabel v. Commissioner of Internal Revenue | OpenJurist
That cost is referred to as the economic accrual of interest for that period. 24. Rev. Rul. 83-84, 1983-1 C.B. 97, 98. Revenue Ruling 83-84 provides that even ...
- Interest Elements in Tax Planning - DigitalCommons@UM Law
that period, and that cost is referred to as the "economic accrual of interest" for that period. Accordingly, the Service held that only the amount of interest that ...
- More on Original Issue Discount - Aspen Publishers
accruing interest on unpaid interest is commonly referred to as the ''economic accrual of interest'' or ''constant interest.'' b. Effect to lender and borrower: Under ...
- 200801039 - Internal Revenue Service
Jan 4, 2008 ... economic performance is satisfied with the economic accrual of interest, the question is whether the filing of a bankruptcy petition changes the ...