For August 2024, the Section 382 long-term tax-exempt rate, used to compute loss carryforward limits for corporate ownership changes, is set at 3.62%. Meanwhile, the Section 7520 rate is 5.2%, influencing the financial benefits for different types of trusts. Higher Sec. 7520 rates favor Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs), while lower rates benefit Grantor Retained Annuity Trusts (GRATs), Charitable Lead Annuity Trusts (CLATs), and Private Annuities.
These rates are essential for taxpayers and financial planners as they directly impact the structuring of loans and the planning of various trusts and annuities. The updates help ensure compliance and optimal tax benefits in financial arrangements.