Section 7520 Interest Rates

 

To be used to value certain charitable interests in trusts. Pursuant to Internal Revenue Code 7520, the interest rate for a particular month is the rate that is 120 percent of the applicable federal midterm rate (compounded annually) for the month in which the valuation date falls. That rate is then rounded to the nearest two-tenths of one percent. For example, the rate that is 120 percent of the applicable federal rate (compounded annually) for January 2018 is 2.62 percent. That rate is then rounded to the nearest two-tenths of one percent or 2.6 percent for purposes of IRC 7520.

Section 7520 Interest Rates

Valuation Month 120% of Applicable Federal Midterm Rate Section 7520 Interest Rate Revenue Ruling
January 2021 .62 .6 Rev. Rul. 2021-1
February 2021 .67 .6 Rev. Rul. 2021-4
March 2021 .74 .8 Rev. Rul. 2021-5
April 2021 1.07 1.0 Rev. Rul. 2021-7
May 2021 1.28 1.2 Rev. Rul. 2021-8
June 2021 1.22 1.2 Rev. Rul. 2021-9
July 2021 1.20 1.2 Rev. Rul. 2021-12
August 2021 1.20 1.2 Rev. Rul. 2021-14
September 2021 1.03 1.0 Rev. Rul. 2021-16
October 2021 1.09 1.0 Rev. Rul. 2021-18

For prior years' rates, please refer to Section 7520 Interest Rates for Prior Years. Also see, Index of Applicable Federal Rates (AFR) Rulings.