Examples of Federal short-term rate in a sentence
The interest rate applicable to the amount of estate tax attributable to the taxable value of the closely held business in excess of $1.34 million is equal to 45 percent of the rate applicable to underpayments of tax under section 6621 of the Code (i.e., 45 percent of the Federal short-term rate plus two percentage points).
For purposes of this Agreement, the term "Discount Rate" shall mean the applicable Federal short-term rate determined under Section 1274(d) of the Code or its successor.
That underpayment rate is re- ferred to hereinafter as the ‘‘section 6621(a)(2) rate.’’ Section 6621(c) and this section, however, provide that the un- derpayment rate on any large cor- porate underpayment is the sum of the Federal short-term rate (determined under section 6621(b)) plus 5 percentage points.
The period from the date the excess benefit transaction occurred to the date of correction is used to deter- mine whether the appropriate AFR is the Federal short-term rate, the Fed- eral mid-term rate, or the Federal long-term rate.
Section 6621(a)(2) provides that the underpayment rate is the sum of the Federal short-term rate (determined under section 6621(b)) plus 3 percentage points.
In the case of a demand loan or advance to which this section applies, the appli- cable Federal rate means the Federal short-term rate determined under sec- tion 1274(d) (determined without regard to the lowest 3-month short term rate determined under section 1274(d)(2)) in effect for each day on which any amount of such loan or advance (in- cluding unpaid accrued interest deter- mined under paragraph (a)(2) of this section) is outstanding.(D) Lender in business of making loans.
Interest is payable on July 1 of each year, beginning on July 1, 1996, at the Federal short-term rate for June of the same year.
Assume that, as of the date the test rate of interest for the debt instrument is determined, the Federal short-term rate is 8 percent, compounded an- nually.
The interest rate, which equals the Federal short-term rate plus three percentage points, is subject to change on the first day of each quarter, which is January 1, April 1, July 1, and October 1.
In the case of a demand loan, the applicable Federal rate shall be the Federal short-term rate in effect under section 1274(d) for the period for which the amount of forgone interest is being determined, compounded semiannually.