Tax Update Blog

IRS Issues Applicable Federal Rates (AFR) for August 2020

July 16, 2020 | Blog
By Joe Kristan

The IRS has released (Rev. Rul. 2020-15) the Applicable Federal Rates under Sec. 1274(d) of the Internal Revenue Code for August 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.

 

IRS AFR chart from Rev. Rul. 2020-15

 

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

Related: Eide Bailly Mergers & Acquisition services.

Historical AFRs are available here


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