Applicable Federal Rates

Applicable Federal Rates

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Applicable Federal Rates

Applicable Federal Rates definition:  Applicable Federal Rates (AFR) are defined monthly by the IRS and based on the rates of Treasury securities, rather than retail lending rates.  With intra-family loans, the AFR is critical to determining if gift tax rules apply. If the interest rate of the intra-family loan is less than AFR (below market rates), then the loan is considered a gift for income tax purposes.

Download our free Family Office Report to learn more about the family office industry.

Read more Family Office Definitions

Tags: What is applicable federal rates?, applicable federal rates definition, applicable federal rates family office, applicable federal rates term, define applicable federal rates, applicable federal rates wealth management, applicable federal rates multi-family office, applicable federal rates single family office

Leave Your Response

* Name, Email, Comment are Required

We run the Family Offices Group, the #1 largest family office association with 84,000+ global members. We offer live events, a bestselling book, Webinars, a family office database, and a family office training & certificate program called the Qualified Family Office Professional (QFOP). To get to know us please watch this 2 minute video, and contact us any time during pacific business hours by calling (212) 729-5067 or emailing us at Clients@FamilyOfficesGroup.com.

Free Family Office Report (PDF)

Contact Details for 1,000 Family Offices in Excel