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IRS publishes AFRs for November 2018
By Trusts & Estates Practice Group on October 22, 2018 at 10:10 AM

IRS publishes AFRs for November 2018The Internal Revenue Service has released the Applicable Federal Rates (AFRs) for November 2018. 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 November 2018:

 

Annual

Semiannual

 

Quarterly

Monthly

Short-term

2.70%

2.68%

 

2.67%

2.67%

Mid-term

3.04%

3.02%

 

3.01%

3.00%

Long-term

3.22%

3.19%

 

3.18%

3.17%

   

The Section 7520 interest rate for November 2018 rises to 3.6 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.

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