Blended Applicable Annual Federal Rates

IRS publishes a “blended annual rate” once a year (with the other July applicable federal rates (AFRs)) to facilitate computation of foregone interest for a below-market demand loan of a fixed principal amount that remains outstanding for the entire calendar year.

The blended annual rates are:

... 0.22% for 2012

... 0.40% for 2011

... 0.59% for 2010  

... 0.82% for 2009 

... 2.8% for 2008

... 4.92% for 2007

... 4.71% for 2006

... 3.11% for 2005

... 1.98% for 2004

... 1.52% for 2003

... 2.78% for 2002

... 4.98% for 2001

... 6.24% for 2000