The IRS may adjust interest rates for various purposes at various times. For example, the rates for overpayments and underpayments of tax are adjusted quarterly.
Interest rates for Q3 in 2018. The interest rates on overpayments and underpayments are unchanged for the third quarter of 2018, which runs from through July 1, 2018 through September 30, 2018 (Rev Rul. 2018-18). The rates are:
Blended rate. Individuals with a below-market demand loan outstanding for all of 2018 can use a blended interest rate to determine what the lender must report as phantom interest income (imputed interest). The borrower may be able to deduct the imputed interest, depending on what the proceeds have been used for. For 2018, the blended rate is 2.03% (Rev. Rul. 2018-19).
Debt on which a person is not personally liable. In case of nonpayment, the creditor must foreclose on property securing the debt. At-risk rules generally bar losses where there is nonrecourse financing, but an exception applies to certain nonrecourse financing for real estate.