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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54001
Experience:  29 years of experience as a tax, real estate, and business attorney.
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What is the lowest interest rate that the IRS will allow.

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What is the lowest interest rate that the IRS will allow.
We were thinking about a 4.15% per annum based upon the current residential rate of 3.75%

Good afternoon. The Applicable Federal Rate .. which varies depending upon the term of the loan...sets the lowest rate the IRS allows. This is posted monthly on the following website.... http://www.irs.gov/app/picklist/list/federalRates.html

 

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

 

 

 

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Customer: replied 6 years ago.

If I read the information you sent to me correctly. The sell of the land and building for the certified appraised value of $380,000, with a interest rate of 4.15% per annum over a 15 year period with a balloon at the end will comply with the IRS rules. Am I correct?

Yes, you are correct.

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