AFR

(redirected from Applicable Federal Rate)
Also found in: Financial, Acronyms.

AFR

Abbreviation for:
adaptive frequency response
annual financial return (Medspeak-UK)
aortic flow rate
aqueous flare response
average flow rate
References in periodicals archive ?
The applicable federal rate (see Q 7513) for demand loans is the short-term rate in effect during the period for which the forgone interest is being determined, compounded semiannually.
Assume that interest at the applicable federal rate for Year 1 would be $6,000, but actual interest under the loan agreement is only $2,000.
This residual value is determined based on actuarial tables and the special applicable federal rate used in discounting the grantor's retained annuity payments.
Current law imposes various rates of interest ranging from the short-term applicable federal rate (AFR) plus 0.5 (for overpayments) to 5.0 (for underpayments) percentage points.
Under Section 7872 the minimum interest rate to be charged to avoid an imputed gift is the "applicable Federal rate" (AFR) published monthly.(8) During 1993, the long-term AFR hovered around 7% and will therefore be used in any illustration, unless otherwise stated.
The settlor receives an installment note bearing interest at not less than the applicable federal rate (IRC section 7872).
These loans are tested each year for adequate interest by comparing the interest rate to the blended applicable federal rate (AFR) published in July of each year (in 2009 this rate was 0.82 percent).
(9) Otherwise, underpayment results in imposition of an interest penalty, compounded daily, at an annual rate that is adjusted quarterly so as to be three percentage points over the short-term applicable federal rate. (10) (See Q 1409).
In order for the loan to be considered an arms-length transaction, the trustee must pay the grantor annual interest on the loan at least equal to the applicable federal rate (AFR).
A term loan (including loans payable upon the insured's death) provides for sufficient interest if the present value of all payments due exceed the amount of the loan, determined as of the loan date using the applicable federal rate (AFR) for that time.
The yield of a section 467 loan is the discount rate at which the sum of the present values of all amounts payable by the lessee as fixed rent and interest on fixed rent, plus the sum of the present values of all amounts payable by the lessor as interest on prepaid fixed rent, equals the sum of the present values of the fixed rent that accrues under the rental agreement.(66) In the case of a section 467 rental agreement that is a disqualified leaseback, a long-term agreement, or a section 467 rental agreement that does not provide adequate interest on fixed rent, the yield of the section 467 loan equals 110 percent of the applicable federal rate (AFR).(67)
If the interest is imputed under Section 283 or 1274, use the applicable federal rate compounded semi-annually.