AFR Rates
If you're transferring more than $13,000 (cumulatively in any calendar year), in order for the transaction to be considered a loan and not a gift, the lender should charge an interest rate no lower than the Applicable Federal Rate (AFR) at the time of the loan. If you charge less, the IRS may view the foregone interest income as a gift. The box below shows the current AFR.
| Applicable Federal Rates (AFR) for October 2009 |
Short Term AFR
(Term 3 Years or Less) |
0.75% |
0.75% |
0.75% |
0.75% |
Mid Term AFRs
(Term More Than 3 Years and 9 Years or Less) |
2.66% |
2.64% |
2.63% |
2.63% |
Long Term AFRs
(Term More Than 9 Years) |
4.10% |
4.06% |
4.04% |
4.03% |
Last update on this page: October 1, 2009
Source: Internal Revenue Service (Rev. Rul. 2005-2)
For additional information on the AFR, please visit the Internal Revenue Service (IRS) website.
