A taxpayer must report in income imputed interest on a loan made below market interest rate.

Name: A taxpayer must report in income imputed interest on a loan made below market interest rate.
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According to the IRS, a taxpayer must report imputed interest on a loan made below market interest rate as taxable income. This is because the IRS treats the forgone interest as a form of income, which must be reported on the taxpayer's tax return.

A Taxpayer Must Report in Income Imputed Interest on a Loan