How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55478
Experience:  29 years of experience as a tax, real estate, and business attorney.
Type Your Tax Question Here...
Richard is online now
A new question is answered every 9 seconds

What is the lowest interest rate that the IRS will allow.

This answer was rated:

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....



I hope this has given you the guidance you were seeking. I wish you the best of luck!


If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.


If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.


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.




Richard and 2 other Tax Specialists are ready to help you
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.