Exemptions, Interest Rates

COVID-19 Stimulus: The Fed’s 2020 TALF — Comparisons to 2008

Akin Gump Strauss Hauer & Feld LLP on 4/2/2020

Under the recently announced Term Asset-Backed Securities Loan Facility (the “2020 TALF”), the New York Federal Reserve will commit to lend on a recourse basis to a special purpose vehicle (the “TALF SPV”), which will...more

Lowered Interest Rates Due To Coronavirus Makes Intra-family Loans an Effective Estate Planning Tool

Proskauer Rose LLP on 3/19/2020

As a result of the Federal Reserve Bank's recent stimulus and interest rate decreases in response to the coronavirus, intra-family loans can be used to transfer wealth to future generations with no gift tax consequences as...more

Supreme Court: 1934 Amendment Repeals 1918 Limitation On Compound Interest

Allen Matkins on 11/15/2019

The same year that the Great War ended, the voters of California approved an initiative measure governing allowable interest rates. This initiative remains uncodified but West Publisher designates these statutes as Civil Code...more

Tax Relief for Replacing LIBOR in Tax-Exempt Debt and Swaps

Orrick, Herrington & Sutcliffe LLP on 10/29/2019

Many tax-exempt bonds and related hedges, such as interest rate swaps ("Exempt Instruments"), use a LIBOR-based interest rate. LIBOR is going away, and existing Exempt Instruments are going to have to be modified to replace...more

Wealth Management Update - August 2014

Proskauer Rose LLP on 7/24/2014

August Interest Rates for GRATs, Sales to Defective Grantor Trusts, Intra-Family Loans and Split Interest Charitable Trusts - The August § 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and...more

The Portfolio Interest Exemption: A Pretty Good Thing

Snell & Wilmer on 12/4/2013

You know what’s better than earning portfolio interest? Nothing. OK, that may be an overstatement. But for non-U.S. lenders looking to earn a return on their U.S.-based investments, with respect to paying U.S. taxes, that’s...more