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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The applicable federal rates are determined by the Secretary on a monthly basis.
7520 rate, which the IRS publishes each month along with the applicable federal rates (AFR).
THIS YEAR HAS BROUGHT WITH it applicable federal rates that are lower than many of us thought possible.
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.
Categories include the AMT, applicable federal rates, backdated options, listed transactions, tax reform, and many others.
Question--Where are the applicable federal rates published?
This site is a good source for applicable federal rates, and it's full of links to other estate planning-related sites.
[sections] 1.482-2(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.
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.
RIAhome.com offers free access to the Applicable Federal Rates (AFR) for the current IRS interest rates.
These rates are published monthly in the same revenue ruling that provides the applicable Federal rates (AFRs) for that month.