Minimum interest on Seller Note

by a searcher from University of Pennsylvania - The Wharton School

1 year ago

Hi All,

I have a deal under LOI, and the Seller recently proposed a 0% interest Seller Note (to offset some other unanticipated costs). Does anyone have information on the tax implications of this, if any? I'm not sure if there is a minimum interest rate required on the Seller Note.

Thanks!

3 likes
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11 comments

searcher from University of Tennessee - Knoxville

https://www.irs.gov/applicable-federal-rates

1 year ago | like reply | 0 likes

admin from Massachusetts Institute of Technology - MIT Sloan School of Management

^Searchfunder member‌ have previously commented on Seller Notes and might be able to help here.

1 year ago | like reply | 2 likes

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