Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 13 years ago on . Most recent reply
![George P.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/10259/1694563553-avatar-sniper.jpg?twic=v1/output=image/cover=128x128&v=2)
Interest rate and Seller financing question
I keep finding articles that suggest that the sellers should charge the adequate interest when financing the house purchase.
(Example: http://www.frascona.com/resource/jag808-seller-carry-financing.htm An installment note must include an adequate stated rate of interest to be paid by the buyer to the seller. An adequate rate of interest is one that is equal to, or greater than, the Applicable Federal Rate ("AFR") published by the IRS on a monthly basis. (It is beyond the scope of this article to address the consequences of the stated rate of interest being less than the AFR.))
Does anyone know what (if any) issues might the seller encounter if he/she finances the property with 0% (or 1-2-3%) loan?
Most Popular Reply
![Bill Walston's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2945/1621346360-avatar-bwalston.jpg?twic=v1/output=image/crop=1390x1390@59x0/cover=128x128&v=2)
Originally posted by George P.:
The first that comes to mind is the imputed interest covered in IRC 483. The IRS will impute (assume) interest if none is charged by the seller. You can find the IRS rates HERE.