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If an Installment Sale Contract Does Not Charge Interest on the Sale

question 24

True/False

If an installment sale contract does not charge interest on the sale of a capital asset, the IRS will impute interest and thereby increase the taxpayer's capital gain and interest income.


Definitions:

Arousal

Arousal refers to the physiological and psychological state of being awake or reactive to stimuli, including heightened physical activity and alertness.

Bursitis

Inflammation of a bursa, a fluid-filled sac that acts as a cushion between bones, tendons, joints, and muscles.

Gynecology

The medical practice dealing with the health of the female reproductive systems and the breasts.

Gynec/o

A prefix pertaining to women or the female reproductive system.

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