Despite concerns about inflation, the interest rates on overpayments and underpayments are unchanged from the second quarter of 2021 (Rev Rul. 2021-10). The rates for the third quarter of 2021 beginning on July 1 are:
Note: The IRS also announced the blended rate for 2021, which is used to figure imputed interest on below market demand loans outstanding for the entire year (Rev. Rul. 2021-12). The blended rate is 0.13% (in contrast to last year’s rate of 0.89%).
A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.