The interest rate that the IRS publishes for valuation of an annuity or remainder interest. (IRC section 7520 prescribes the valuation rate, also called the 7520 rate.) The IRS publishes the rate monthly. Publications such as TAXLINE from National Underwriter publish the monthly IRS rate. 

 

The program uses this rate in determining the tax liability generated as income received in respect of a decedent when an income asset will continue to be received after the death of the owner. (The exact calculation requires more information than the program requests. The present value of the future income based on the IRS rate determines the estimate.) If there are no income assets that will continue after death in a case, this entry has no effect on the results for that case.

 

 

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