Tax Update Blog

IRS Issues Applicable Federal Rates (AFR) for July 2020

June 17, 2020 | Blog
By Joe Kristan

The IRS has released (Rev. Rul. 2020-14) the Applicable Federal Rates under Sec. 1274(d) of the Internal Revenue Code for July 2020. These rates are used for various tax purposes, including minimum rates for loans.

There are rates for "short-term," "mid-term," and "long-term" instruments. Short-term covers demand loans and instruments extending up to three years. Mid-term covers loans cover instruments of over three years up to nine years. Long-term covers instruments with maturities longer than nine years.

 

July 2020 AFR schedule

 

The Section 382 long-term tax-exempt rate for corporation ownership changes during July 2020 is 0.89%

Related: Eide Bailly Mergers & Acquisition services.

Historical AFRs are available here


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