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 July 2013 is 1.4%, while the blended annual rate for 2013, which can be used to compute the forgone interest on a demand loan of a fixed principal amount that is outstanding for the entire year, is .22%.
The AFRs for the month of July are as follows:
|
Annual |
Semiannual |
Quarterly |
Monthly |
|
|
Short-term (≤ 3 years) |
0.23% |
0.23% |
0.23% |
0.23% |
|
Mid-term (> 3 years but ≤ 9 years) |
1.22% |
1.22% |
1.22% |
1.22% |
|
Long-term (> 9 years) |
2.80% |
2.78% |
2.77% |
2.76% |
