Montana Promissory Note Without Interest
Description
How to fill out Montana Installments Fixed Rate Promissory Note Secured By Personal Property?
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FAQ
A promissory note must specify the percentage interest charged on the loan. All loans should carry some interest, even if it is between family members.
Principal and interest are payable in lawful money of the United States of America. Maker may prepay this Note in full or in part at any time without a prepayment charge. DEFAULT/ACCELERATION.
Promissory notes legally bind the borrower and lender in an agreement where the borrower is responsible for paying back a loan or debt. They lay out the conditions of the loan and detail the time frame for paying back the loan as well as any interest that might accrue over the life of the loan.
Although it's a legal document, writing a promissory note doesn't have to be difficult. There are even websites online that offer fill-in-the-blank templates, like or .
If you decide to give the loan without charging any interest, be prepared to justify it to the IRS, because it literally is a gift in the IRS's eyes. The IRS can "impute" interest on your loan, whether you actually charged any interest or not, and require you to report that imputed interest as income.