IRS Discount Rate


The IRS Discount Rate is Historically Low


What Is the IRS Discount Rate?

Also known as the AFR or Applicable Federal Rate, the IRS discount rate is part of the calculation used to determine the charitable deduction for many types of planned gifts, such as charitable remainder trusts and gift annuities. The rate is the annual rate of return that the IRS assumes the gift assets will earn during the gift term.

Depending on the type of planned gift made, the discount rate may have significant, little, or no effect on the deduction calculated. Understanding the influence of the discount rate on the deduction earned by each kind of planned gift will allow you to choose the best rate in each case.

Consult with your tax advisor for advice on your specific tax situation.

Contributions to the Sisters of IHM may be deductible for income tax purposes as provided by law. The Congregation is a 501(c)(3) organization; Tax ID # 24-0795454.  Our full legal name is the Sisters, Servants of the Immaculate Heart of Mary, Scranton.