Preservation | Family Wealth Protection & Planning

Subscribe

Blog Editors

Topics

Archives

IRS announces AFRs for January 2019
By Trusts & Estates Practice Group on December 27, 2018 at 10:10 AM

IRS announces AFRs for January 2019The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for January 2019. AFRs are published monthly and represent the minimum interest rates that should be charged for family loans to avoid tax complications.

Here are the rates for January 2019:

 

Annual

Semiannual

Quarterly

Monthly

Short-term

2.72%

2.70%

2.69%

2.68%

Mid-term

2.89%

2.87%

2.86%

2.85%

Long-term

3.15%

3.13%

3.12%

3.11%

   

The Section 7520 interest rate for January 2019 is 3.4 percent. The Section 7520 interest rate is the interest used in a common estate tax planning technique called a “grantor retained annuity trust” or “GRAT.” In general, the lower the interest rate, the more effective the transaction is for reducing estate taxes.

For more information, see the full listing from the IRS here.

Facebook Twitter LinkedIn Google+ Email

This website uses cookies to improve functionality and performance. If you choose to continue browsing this website, you consent to the use of cookies. Read our Privacy Policy here for details.