applicable federal rate


Interest rates set by the U.S. Treasury for determining imputed interest. These are published monthly, and the rate most commonly used is the lowest rate for the month of the transaction as well as the two months before.

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You should always make sure that you are getting the best applicable federal rate you can before you close the deal.

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The treasury department were the ones that set the applicable federal rate and they were all very interested in what they did.

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Though the promissory note received in connection with the sale did not establish an interest rate, the Internal Revenue Service will impute a rate based upon published applicable federal rates.

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Appleton rule application