Applicable Federal Rate (AFR) - What is it?
The applicable federal rate (AFR) is the interest rate that the Internal Revenue Service (IRS) allows for private loans. The IRS publishes a set of interest rates each month that it considers the minimum market rate for loans. Any interest rate that is less than the AFR would have tax implications. Pointing photo created by wayhomestudio: https://www.freepik.com/photos/pointing
