On Thursday, the Internal Revenue Service announced federal rates for the month of August under \u00a7\u00a7 1274 and 7520 of the Internal Revenue Code (“IRC”) that will be lower than some of the previously record-low rates for June. <\/p>\n\n\n\n
The \u00a77520 rate of 0.4% is peculiar because that rate is defined as 120% of the federal mid-term rate, and yet the mid-term rate is 0.41%. The rate that is 120% of the mid-term rate can be less than 100% of the mid-term rate because the \u00a77520 rate must be rounded to the nearest two-tenths of a percent. Multiplying 0.41% by 120% produces 0.492%, which rounds down to 0.4% (which is the nearest percentage evenly divisible by 0.2%).<\/p>\n\n\n\n
For information on estate planning techniques to take advantage of these low rates, see “Low-Interest Estate Planning Strategies<\/a>.”<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" On Thursday, the Internal Revenue Service announced federal rates for the month of August under \u00a7\u00a7 1274 and 7520 of the Internal Revenue Code (“IRC”) that will be lower than some of the previously record-low rates for June. The \u00a77520 … Continue reading