What is the AFR rate for December 2020?
What is the AFR rate for December 2020?
0.6 percent
AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications. The Section 7520 interest rate for December 2020 is 0.6 percent.
What is the applicable federal rate for January 2021?
The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for January 2021. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications. The Section 7520 interest rate for January 2021 is 0.6 percent.
What is the AFR rate for 2019?
Historical AFRs.
| AFR | ANNUAL | MONTHLY |
|---|---|---|
| Long-Term AFRs – For notes with a term in excess of nine years. | ||
| October 2019 | 1.86% | 1.84% |
| September 2019 | 2.21% | 2.19% |
| August 2019 | 2.33% | 2.31% |
What is 120% of the federal mid term rate?
For example, 120% of the applicable federal midterm rate (compounded annually) for February 2021 is 0.67%. That rate is then rounded to the nearest two-tenths of one percent or 0.6% for purposes of IRC §7520.
What is the AFR rate?
AFR is the minimum interest rate the IRS allows for private loans. The three types of AFRs are short-term, mid-term, and long-term. The IRS publishes AFR rates every month. You can charge below the AFR rate when you lend money to a family member, but a lower rate may result in tax consequences.
What is the AFR rate for December 2019?
2.09%
December
| Period for Compounding | Annual | Monthly |
|---|---|---|
| Short-term (<3 yrs) | 1.61% | 1.59% |
| Mid-term (>3 yrs <9 yrs) | 1.69% | 1.67% |
| Long-term (>9 yrs) | 2.09% | 2.07% |
What is the AFR rate for September 2021?
1.0 percent
The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for September 2021. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications. The Section 7520 interest rate for September 2021 is 1.0 percent.
