Applicable Federal Rate (AFR)

Applicable Federal Rate (AFR),

What is Applicable Federal Rate (AFR)?

  • The applicable federal rate (AFR) is the lowest interest rate allowed for personal loans by the Inland Revenue Service (IRS). Each month, the IRS issues a series of interest rates that allow agents to consider the lowest market rates for any loan. Interest rates lower than AFR will be tax related. The IRS issues these fees in accordance with Section 1274 (d) of the Income Tax Code.

    • If the interest on the loan is less than the applicable AFR, it could result in a cost to the parties involved.
    • AFR is used to determine the results of initial issue rebates, non-exported interest, gift tax, and down-to-market borrowing tax.
    • The parties should use the AFR issued by the IRS when approving the initial loan by the lender.

Literal Meanings of Applicable Federal Rate (AFR)

Applicable:

Meanings of Applicable:
  1. Relevant or appropriate.

Sentences of Applicable
  1. Accident claims are also considered.

Synonyms of Applicable

related, apposite, significant, felicitous, connected, relevant, germane, material, pertinent, appropriate

Federal:

Meanings of Federal:
  1. Refers to a system of ownership or government in which several states form a single entity but remain independent in internal affairs.

Sentences of Federal
  1. Agreement of the Russian Federation that divides power between the Russian federal and local governments

Rate:

Meanings of Rate:
  1. Set a pattern or value for a particular scale (object).

  2. Think of it as a particular quality, standard or area.

  3. A measure, quantity or frequency that is usually measured in relation to another quantity or unit of measure.

  4. Pay a fixed price or charge something for something, especially good or service.

  5. Scolding (someone) in anger

Sentences of Rate
  1. This event was considered a great success.

  2. Promotion price

Synonyms of Rate

gauge, cost, hold to be, figure, consider to be, reckon to be, appraise, amount, find to be, fare, weigh up, assess, measure, value, price, estimate, think to be, calculate, adjudge, judge to be, evaluate, compute, tariff, deem to be, charge

Applicable Federal Rate (AFR),

What is The Meaning of Applicable Federal Rate (AFR)?

  1. Applicable Federal Rate (AFR) definition is: The applicable federal rate (AFR) is the minimum interest rate set by the Internal Revenue Service (IRS) for personal loans. Each month, the IRS issues a series of rates that agents consider the lowest interest rates on the market for loans. Interest rates lower than AFR will be taxed. The IRS issues these fees in accordance with section 1274 (d) of the Internal Revenue Code.

    • If the interest on the loan is less than the applicable AFR, it could result in an event that would cost the parties involved.
    • The AFR is used to determine the tax consequences of oral issue exemptions, undisclosed interest, gift rights, and down-to-market loans.
    • The parties should use the AFR issued by the IRS at the time of initial loan approval by the lender.

Literal Meanings of Applicable Federal Rate (AFR)

Applicable:

Sentences of Applicable
  1. The same ideas apply to accident claims.

Synonyms of Applicable

■■■■■■■■ to the purpose, appurtenant, to the point, useful, helpful, apropos of, apt, suitable, ad rem, of use, befitting

Federal:

Meanings of Federal:
  1. To be affiliated with or affiliated with a system of government in which several states form a unit but remain independent in internal affairs.

  2. Affiliates or appointees to the central government, as individual units that make up the federation.

Sentences of Federal
  1. Federal Europe.

  2. The Ministry of Health has the sole federal responsibility for medical care.

Synonyms of Federal

banded together, integrated, in partnership, amalgamated, combined, united, in alliance, linked, confederate, federated, associated, in league, allied, federative, cooperating

Rate:

Meanings of Rate:
  1. A measure, quantity or frequency that is usually measured in relation to another quantity or measure.

  2. A fixed price is paid or charged for something.

  3. Set a pattern or value for a specific scale (object).

  4. Think of it as a special standard.

  5. Correct spelling

  6. Soak (linen or linen) in water to soften it.

Sentences of Rate
  1. The island has one of the lowest crime rates in the world.

  2. Minimum hourly rate 40 3.40

  3. They were asked to assess their abilities in various driving techniques.

  4. Atkinson called him the best defender in Europe.

  5. This young man has to make wise decisions because of his lack of education.

  6. Cannabis was removed and used as hemp to make clothes.

Synonyms of Rate

place, toll, pay, allowance, rank, damage, account, hire, levy, payment, position, class, classify, fee, esteem, outlay, look on, put a value on, wage, regard