When it comes to family loans — especially loans above $100,000 — the IRS Applicable Federal Rates represent the absolute minimum market rate of interest a Lender should consider charging a Borrower in order to prevent unnecessary tax complications. There are three AFR tiers based on the repaym...
If you lend someone money at a “below-market-rate” of interest, you may owe tax on what the IRS calls "imputed interest," even if little or no interest is paid to you. The government sets a minimum loan interest rate, known as the Applicable Federal Rate, or AFR, each month. Loan...
To avoid adverse gift tax consequences, a minimum rate set by the IRS (known as the Applicable Federal Rate or AFR) must be charged. The AFRs announced for May are historically low: just 0.25%, 0.58% and 1.15% for short-term (up to three years), midterm (three to nine ...
To avoid adverse gift tax consequences, a minimum rate set by the IRS (known as the Applicable Federal Rate or AFR) must be charged. The AFRs announced for May are historically low: just 0.25%, 0.58% and 1.15% for short-term (up to three years), midterm (three to ni...
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