The June 2025 Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 5.00%, which is the same as the April 2025 Section 7520 rate. The May applicable federal rate (“AFR”) for use with a sale to a defective grantor trust or intra-family loan with a note having a duration of:

3 years or less (the short-term rate, compounded annually) is 4.00%, down from 4.05% in May;

3 to 9 years (the mid-term rate, compounded annually) is 4.07%, down from 4.10% in May; and

9 years or more (the long-term rate, compounded annually) is 4.77%, up from 4.62% in May.

IRS Notice 2025-23

The Treasury Department and IRS plan to remove Treas. Reg. § 1.6011-18, which had classified certain partnership related-party basis adjustments as "transactions of interest" (TOIs) st

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