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reasonable rate?

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Last Updated On
ByBob

L1: reasonable rate? I am going to utilize the 72t option using 7%. Is this a “reasonable” rate under the IRS Guidelines.Thanks2002-09-13 17:54, By: Bob, IP: [127.0.0.1]
L2: reasonable rate? 120% of the LongTerm AFR for the current month is 6.29%. Reasonable is a strange word and open for intrepretation. Since it is above the common index, the real questions is can you convince the IRS that it is reasonable if you end up in an audit?2002-09-13 17:56, By: Gfw, IP: [127.0.0.1]

L2: reasonable rate? It depends. If you are doing a one time calculation using the amortization or annuity method, personally, I would have no problem opining that 7% is reasonable. However, if you are going to perform annual recalculation, then no. As Gfw suggests, stick to 120% of the long-term applicable federal rate.TheBadgerwjstecker@wispertel.net2002-09-13 19:51, By: TheBadger, IP: [127.0.0.1]

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