forgone interest
Defined in 1 place of the United States Code.
The term “forgone interest” means, with respect to any period during which the loan is outstanding, the excess of—
(A) the amount of interest which would have been payable on the loan for the period if interest accrued on the loan at the applicable Federal rate and were payable annually on the day referred to in subsection (a)(2), over
(B) any interest payable on the loan properly allocable to such period.
Source
- 2013–present26 U.S.C. § 7872Internal Revenue Code · Treatment of loans with below-market interest rates · for purposes of this section
The term "forgone interest" means, with respect to any period during which the loan is outstanding, the excess of—
(A) the amount of interest which would have been payable on the loan for the period if interest accrued on the loan at the applicable Federal rate and were payable annually on the day referred to in subsection (a)(2), over
(B) any interest payable on the loan properly allocable to such period.
For purposes of this section—
Source
- 1996–201826 U.S.C. § 7872Internal Revenue Code · Treatment of loans with below-market interest rates · for purposes of this section