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contingent interest

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contingent interest n. an interest in real property which, according to the deed (or a will or trust), a party will receive only if a certain event occurs or certain circumstances happen. Examples: surviving a person who had a life estate (the right to use the property for his/her life), or having children at the time such a life estate ends. (See: contingent, contingent remainder, future interest)


See also: claim, right


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real estate through SAMs: Taxpayers may attempt to use debt instruments with contingent interest features to avoid IRC section 897.
2002-31, the IRS concluded that a convertible debt instrument issued with contingent interest that is neither "remote nor incidental" is subject to the Regs.
1, 2019, contingent interest will accrue in certain circumstances relating to the trading price of the debentures.
 
 
 
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