What is the lowest interest rate a family member can charge another family member?

I know you can't lend money to family for free but there is a set interest rate the goverment sets.Where can I find that out.Will that rate also go down if the Fed lowers rates?|||While you CAN loan money to family for free...., the IRS figures it differently and will assess a fixed interest rate (whether you actually charged interest or not) which is used as the basis to calculate interest income.





I know this for a fact because my in-laws financed our house for us at 0% interest, yet had to pay taxes on a predetermined interest rate of 10% even though they never saw the money themselves.





I think the market is so volatile right now, that really the best bet is to call the IRS directly, and find out what percentage you are supposed to use for the 2008 tax year.|||You can lend money for free.





You can also charge what you would get if the money was in the bank.





I do not know of any law setting a minimum interest rate.|||You can loan money to family or friends interest free if you want to.|||Where did you get the idea that you can't lend money at zero percent?