Applicable Federal Rate (AFR) Warning
According to IRS regulations, loans of more than $13,000 in one year
must have a minimum interest rate in order to be considered a loan and
not a gift. The IRS posts updated AFR rates monthly on their website
The AFR Annual Rate as of March 2016 is
In order to avoid having the IRS consider this loan a gift, you should
adjust your interest rate to be equal to or greater than the current AFR.