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TimeValue Software Blog

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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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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Calculating Blended Rates

By Martel Pellerin

TValue is a popular tool for calculating the blended rate on a variable rate loan or for multiple loans in a portfolio. This is also known as the weighted average rate. With TValue, it is an easy exercise to get this magic number. Here are two examples of different customer cases we recently handled.

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Year End Accruals for Compound Interest Loans

By Martel Pellerin

At the end of the year, we have customers call for assistance with compound interest loans (Normal Amortization) who ask “How do I calculate my year-end interest accruals or interest paid?” With compound interest loans and irregular payments, this can be challenging, but there is an alternative way to calculate them. Let’s show you how TValue can assist in calculating year-end interest accruals and interest paid.

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IRS Income Tax Penalties and Interest, Part 2

By Martel Pellerin

In addition to the standard Failure to File and Failure to Pay penalties, there are multiple other penalties that can be assessed by the IRS that can be easily calculated and verified using TaxInterest IRS/State interest and penalty software. TaxInterest software will allow you to determine the penalty amount and do the appropriate interest calculation. TaxInterest also handles refund interest for both individuals and corporations.

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