Applicable Federal Rate (AFR) Definition | Finance Strategists
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Applicable Federal Rate (AFR) Definition | Finance Strategists
The Applicable Federal Rate, or AFR, is the minimum rate of interest that can be charged on private loans without incurring taxes. If a loan’s interest falls below the Applicable Federal Rate, the loan can trigger a taxable event. The AFR is published monthly by the IRS based on aggregated data from the market yields of US marketable debts ...
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