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prepay |
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prepay verb defray in advance, discharge in advance, give compensation for in advance, make payment in addance, meet the bill ahead of time, pay in advance, presettle, satisfy in advance, settle in advance, tender in advance Associated concepts: prepayment clause How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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In Letter Ruling 200602002, the IRS ruled that a donor's prepayment of tuition for each of six grandchildren for multiple years through grade 12, made directly to a school, will be deemed qualified transfers excluded from the girl tax under Sec. But a prepayment option, bolstered by a recent IRS Private Letter Ruling, may be an attractive alternative to such plans--and avoid gift taxes altogether. Prepayment penalties are fees that a borrower must pay the lender if the borrower decides to pay down or pay off the loan principal ahead of schedule. |
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