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Applicable Federal Rates for August 2013

by | 29 Jan | Uncategorized

Applicable Federal Rates are used to calculate assigned interest charges and published monthly by the Internal Revenue Service for federal income tax purposes.

Short-term AFRs are determined from the one-month average of the market yields from marketable obligations of maturities of three years or less. Mid-term AFRs are from obligations of maturities of more than three and up to nine years. Long-term AFRs are from bonds with maturities of more than nine years. 

The Section 7520 rate for August 2013 is 2.0%. The AFRs for the month of August are as follows:

 

Annual

Semiannual

Quarterly

Monthly

Short-term (≤ 3 years)

0.28%

0.28%

0.28%

0.28%

Mid-term (> 3 years but ≤ 9 years)

1.63%

1.62%

1.62%

1.61%

Long-term (> 9 years)

3.16%

3.14%

3.13%

3.12%

Interest on loans should not be less than the AFR for the loan to be considered a taxable event and not a gift by the IRS. 

Since 1938, Zinner has counseled individuals and businesses from start-up to succession. At Zinner, we strive to ensure we understand your business and recognize threats that could impact your financial situation.
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