The Cheyenne golf and tennis club requires its members to purchase stock in the corporation and to make a deposit of $10,000. The deposit is to be repaid in 30 years, and no interest is charged. Is the deposit subject to the imputed interest rules for below-market loans?
Internal Revenue Code - Section 7872 elaborates the treatment of below-market loans. Any loan directly or indirectly between a corporation and any shareholder of such corporation is ...
The solution details imputed interest rules for below-market loans.