01-12-2013, 01:00 AM
Minimum interest rates for IRS purposes are published each month by the IRS. They are called Applicable Federal Rates (AFR) and vary for short term (less than a 3 years), midterm (3-9 years) and long term (9 years and beyond). Here's a link for the current one:
http://www.irs.gov/pub/irs-drop/rr-12-31.pdf
So, the December ruling was that the minimum short term interest rate was .24% annually; for midterm it was .95% annually and for long term it was 2.40% annually.
The Jan ruling should be out any time now.
A simple document indicating the amount loaned between the two parties listed, the term and the interest rate of at least the AFR should satisfy the IRS.
http://www.irs.gov/pub/irs-drop/rr-12-31.pdf
So, the December ruling was that the minimum short term interest rate was .24% annually; for midterm it was .95% annually and for long term it was 2.40% annually.
The Jan ruling should be out any time now.
A simple document indicating the amount loaned between the two parties listed, the term and the interest rate of at least the AFR should satisfy the IRS.