What is the AFR rate for 2020?

IRS Applicable Federal Rates (AFRs)May 2020Apr. 2020Monthly0.58%0.99%

Keeping this in view, what AFR rate should I use?

For demand loans, taxpayers should use the short-term AFR in effect for each semi-annual period that the loan is outstanding. Imputed interest on demand loans with a fixed amount outstanding for the entire year can be calculated using the blended annual rate of 0.73% (for 2016), per Rev. Rul.

Also, what is the AFR rate for 2019?

The downward trend that began in January 2019 continues, with all AFRs and the 7520 rate at or below 1.86% for October 2019.

What is the current 7520 rate?

For example, the rate that is 120 percent of the applicable federal rate (compounded annually) for January 2018 is 2.62 percent. That rate is then rounded to the nearest two-tenths of one percent or 2.6 percent for purposes of IRC 7520.

How is interest on a family loan calculated?

Convert the annual rate to a monthly rate by dividing by 12 (6% annually divided by 12 months results in a 0.5% monthly rate). Figure the monthly interest by multiplying the monthly rate by the loan balance at the start of the month ($100,000 multiplied by 0.5% equals $500 for the first month).