As interest rates have dropped, so has the amount the IRS says you must charge on a loan to a relative. The April, 1993, federal rate for a long-term loan is 6.42%, down from 7.04% in February. Rates for short-term loans (zero to three years) fell to 3.72% from 4.19%, and midterm loans (three to nine years) slid to 5.38% from 6.13%.
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