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TimeValue Software Blog

Structuring Lease Buydowns

By Martel Pellerin

With interest rates increasing over the last couple of years, sometimes buying the rate down can be a great strategy. A buydown is a way for a lessee to obtain a lower interest rate and payments by having points paid up front at closing. Seller-paid buydowns are the most common type of lease buydown.

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Buying a Partial Note

By Martel Pellerin

People buy and sell notes all of the time. Sometimes they only want to buy or sell a partial of the note. We had a customer request assistance on purchasing a partial of a note utilizing TValue software.

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Per Diem Interest Calculation

By Martel Pellerin

Per diem interest is the interest charged on a loan on a daily basis. The finance charge is interest calculated since the last time a payment was made. Often, you have a loan payoff at a point in time and it doesn’t close and you need to determine the per diem interest for each day the loan doesn’t get paid off.

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GASB 96 Present Value Calculation

By Martel Pellerin

The Government Accounting Standards Board (GASB) issued Statement No. 96, guidance on the accounting and financial reporting for subscription-based information technology agreements (SBITAs). This statement established that a SBITA results in a right-to-use asset and a corresponding subscription liability.

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Imputed Interest using the Applicable Federal Rates (AFRs)

By Martel Pellerin

In 1984, the Tax Reform Act set provisions for applicable federal rates (AFRs). This is a minimum tax rate that must be charged on all loans, including personal/family loans. The IRS provides various prescribed rates for federal income tax purposes each month and TimeValue Software offers them on our website at Applicable Federal Rates | TimeValue Software.

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