August 16, 2022
The IRS has released (Rev. Rul. 2022-17) the Applicable Federal Rates under Sec. 1274(d) of the Internal Revenue Code for September 2022. 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 and instruments of over three years and up to nine years. Long-term covers loans and instruments with maturities longer than nine years.
The Section 382 long-term tax-exempt rate used to compute the loss carryforward limits for corporation ownership changes during September 2022 is 2.38%
The Section 7520 rate is used for valuing annuities and other planning techniques for estate and gift tax purposes. The current historically-low rates provide beneficial estate planning opportunities. Ava Archibald's Insight, Estate and Gift Tax—Are You Prepared for Changes?, is a great place to learn more.
Historical AFRs are available here.
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.