Sentences with phrase «applicable federal rate»

If for some reason you didn't want to touch your lifetime exclusion, you could give up to the annual exclusion ($ 30k if you are single, $ 60k if married) and then you could either give the remaining $ 10k next year, or call the remaining $ 10k a loan and charge interest based on applicable federal rates (AFR, currently ~ 2 %).

During April 2018, for example, the applicable federal rate for long - term loans is 3.00 % if the interest is compounded monthly.

Low interest rates if the applicable federal rate (AFR), when the plan is implemented, is below current market interest rates.

Marie Poe, my understanding is that 10 % is not the automatic threshold assumed by many, but that the applicable federal rate and section 32 and 35 laws must be applied and the loan pass that test.

You are referring to what the IRS calls the «applicable federal rate» (AFR).