Page 24 - Interest Income - Individuals

Interest Income

Below-market loans.
 In general, a below-market loan is a loan on
which no interest is charged or on which
interest is charged at a rate below the
applicable federal rate. Usurious interest.
 If you are the lender of a below-market Usurious interest is
loan, you may have additional interest interest charged at an
income. See Below-Market Loans in chapter 2021 illegal rate. This is
1 of Pub. 550 for more information. taxable as interest
unless state law
2021 automatically changes
it to a payment on the
principal.
Interest on annuity
contract. 2021
Accumulated interest on
an annuity contract you
sell before its maturity
date is taxable. Interest on condemnation
award.
If the condemning
2021 authority pays you

interest to compensate
you for a delay in payment
of an award, the interest
is taxable..

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