Page 9 - Chapter 23 - Interest
P. 9
s 24J – During Term Of Instrument
Interest is calculated iro an accrual period and spread over the term of the
instrument on a compounding accrual basis
Term = period from date of issue/transfer of instrument until redemption of
instrument
Accrual period = if instrument with regular payment periods < 12 months,
then use those regular interval
Otherwise any 12 month period chosen by taxpayer
Max accrual period Applied constantly
= 12 months throughout term of
instrument
Example: if payments made monthly, accrual period = a month
