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April 7, 2021
Question

Can interest shortfall on contingent payment debt be greater than original issue discount?

  • April 7, 2021
  • 1 reply
  • 0 views

TurboTax is asking me to review it.

    1 reply

    ReneeM7122
    April 8, 2021

    It depends.

     

    This is a complicated calculation.  See IRS Section 1.1274-2.  The short long answer is most probably no, interest shortfall on contingent payment debt isn't usually greater than original issue discount.