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The Section 7520 rate for January 2009 will decrease from 3.4% to 2.4%
On December 18, the IRS published the special interest rates that apply to various income and estate planning techniques. These rates (referred to as the “section 7520 rate” and “applicable federal rates”) will be set at all-time lows beginning in January 2009. The decreased rates make it easier for you to transfer a family business, farm or real estate to younger generations without the imposition of estate and gift taxes. In addition, certain income tax transactions (e.g., low-income family loans) are benefited by the lower rates. You should consider renegotiation older notes with higher interest rates.
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