Applicable Federal Rate

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Applicable Federal Rate

The interest rate the IRS assumes when it calculates imputed interest. Imputed interest is interest that is assigned to an investment for tax purposes even when no interest has been paid. Thus, one pays taxes on the applicable federal rate. It is published by the U.S. Treasury.
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shares information about applicable federal rates (AFRs).
7520 rate, which the IRS publishes each month along with the applicable federal rates (AFR).
For example, a client can use the Applicable Federal Rates (AFR) to lock in low imputed federal interest rates for intermediate- and long-term private premium financing, which makes easy, low-cost funding possible for a large life insurance policy that can be excluded from an estate.
This site is a good source for applicable federal rates, and it's full of links to other estate planning-related sites.
482-2(a)(2), which provides for a safe-haven interest calculation based on the applicable federal rates (AFRS) specified in section 1274(d).
He said it is important to use the applicable federal rates for repayment agreements to further substantiate an arm's length agreement.
In addition, the IRS charges interest on any unpaid balance at current applicable federal rates.
The IRS's published applicable Federal rates (AFR) are also at their lowest level in decades, which presents a number of planning opportunities for moving wealth to younger generations with little or no gift tax implications.
The book also includes tables outlining short-, mid-, and long-term applicable federal rates, as well as low income housing credit percentages for 1995.
These rates are published monthly in the same revenue ruling that provides the applicable Federal rates (AFRs) for that month.
The applicable Federal rates (AFR) for December 1998 reflect a significant interest rate drop.
Each month, the IRS issues applicable Federal rates (AFRs) and specified percentages of those rates.