InstantForum.NET v4.1.4California Society of CPAshttp://forums.calcpa.org/forums@calcpa.orgSun, 21 Mar 2010 10:27:18 GMT20http://forums.calcpa.org/Topic796-2-1.aspxI have claimed discounts when clients have made loans where the interest is less than the AFR as of the date of death. I haven't had the situation where the loans were intrafamily though.</P><P>I just checked the PPC Form 709 Deskbook - it discusses "below-market interest rate" loans on Page 5-3. It says that demand notes cannot be discounted but a term loan can be discounted considering the interest rate for a comparable instrument taking into account late payments or inadequate security. In your case, I guess you're saying that there are no comparable interest rates.</P><P>There is a reference to PLR 8229001.Mon, 03 Aug 2009 09:55:04 GMTMary Kay Foss