Table of Contents
What is the mid-term AFR rate?
The IRS published an annual short-term AFR of 1.85%, mid-term AFR of 2.51%, and long-term AFR of 2.66% in April 2022.
What is the AFR for January 2021?
0.6 percent
Preservation | Family Wealth Protection & Planning 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 2016?
— Short Term Rates for 2016 —
| Month | Annual | Quarterly |
|---|---|---|
| Jan. | 0.75% | 0.75% |
| Feb. | 0.81% | 0.81% |
| March | 0.65% | 0.65% |
| April | 0.70% | 0.70% |
What is the AFR for December 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 December 2021 is 1.6 percent.
What is the AFR for January 2022?
1.6 percent
The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for January 2022. 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 2022 is 1.6 percent.
What is short-term mid-term and long-term AFR?
Short-term AFR rate is charged on loans with a maturity period of three years or less, while the mid-term AFR rate is charged on a loan with a maturity period of between three years and nine years. The long-term AFR rates are applicable to loans with maturities of more than nine years.
What is the average AFR rate for 2021?
The Section 7520 interest rate for December 2021 is 1.6 percent.
What is the current AFR long-term rate?
April 2022
| The AFRs are as follows: | Annual | Monthly |
|---|---|---|
| Short-term (up to 3 years) | 1.26% | 1.26% |
| Mid-term (3 to 9 years) | 1.87% | 1.85% |
| Long-term (over 9 years) | 2.25% | 2.23% |
What are the applicable federal mid-term rates?
Applicable Federal Mid-Term Rates Month/Year Month/Year Applicable Federal Mid-term rate for Ann Converted to a monthly rate (1+ i) 1/12 September 2020 0.35% 0.0291% October 2020 0.38% 0.0316% November 2020 0.39% 0.0324% December 2020 0.48% 0.0399%
How is the mid-term rate calculated?
Each month, the Internal Revenue Service publishes the annual applicable federal mid-term rate, as a percentage rounded to two decimal places (e.g., 2.45%). That rate must be converted to an equivalent monthly rate for the purposes described above. Depending on the way that adjustment is made, the results may vary slightly (mostly due to rounding).
What is the PBGC mid-term rate?
The same rates are also used under certain circumstances when PBGC trustees a plan (e.g., to accumulate the value of past benefits owed but not paid). Each month, the Internal Revenue Service publishes the annual applicable federal mid-term rate, as a percentage rounded to two decimal places (e.g., 2.45%).