Applicable Federal Rates for December 2020

Take-Away: The IRS published today the applicable federal rates (AFRs) and the IRC 7520 rate for  transactions occurring in December, 2020.

Short-term Rate (less than 3 years):                         0.15%

Mid-term Rate (between 3 and 9 years):                 0.48%

Long-term Rate (longer than 8 years, 11 months) 1.31% (up from this month’s 1.17%) 

The IRC 7520 rate used to value retained interests is 0.6% (up from this month’s 0.4%.)