For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2010-06 indicates the applicable federal rate under section 7520 for February 2010 is 3.4%; up 0.4% from the January rate of 3.0% and up 0.2% from the December rate of 3.2%.
Rev. Rul. 2010-6; 2010-6 IRB 1
Full Text:
Part I
Section 1274. -- Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.)
This revenue ruling provides various prescribed rates for
federal income tax purposes for February 2010 (the current month).
Table 1 contains the short-term, mid-term, and long-term applicable
federal rates (AFR) for the current month for purposes of section
1274(d) of the Internal Revenue Code. Table 2 contains the short-term,
mid-term, and long-term adjusted applicable federal rates (adjusted
AFR) for the current month for purposes of section 1288(b). Table 3
sets forth the adjusted federal long-term rate and the long-term
tax-exempt rate described in section 382(f). Table 4 contains the
appropriate percentages for determining the low-income housing credit
described in section 42(b)(1) for buildings placed in service during
the current month. However, under section 42(b)(2), the applicable
percentage for non-federally subsidized new buildings placed in service
after July 30, 2008, and before December 31, 2013, shall not be less
than 9%. Finally, Table 5 contains the federal rate for determining the
present value of an annuity, an interest for life or for a term of
years, or a remainder or a reversionary interest for purposes of
section 7520.
REV. RUL. 2010-6 TABLE 1 Applicable Federal Rates (AFR) for February 2010 Period for Compounding ____________________________________________ Annual Semiannual Quarterly Monthly ____________________________________________ Short-term AFR .72% .72% .72% .72% 110% AFR .79% .79% .79% .79% 120% AFR .86% .86% .86% .86% 130% AFR .94% .94% .94% .94% Mid-term AFR 2.82% 2.80% 2.79% 2.78% 110% AFR 3.10% 3.08% 3.07% 3.06% 120% AFR 3.39% 3.36% 3.35% 3.34% 130% AFR 3.67% 3.64% 3.62% 3.61% 150% AFR 4.24% 4.20% 4.18% 4.16% 175% AFR 4.96% 4.90% 4.87% 4.85% Long-term AFR 4.44% 4.39% 4.37% 4.35% 110% AFR 4.89% 4.83% 4.80% 4.78% 120% AFR 5.34% 5.27% 5.24% 5.21% 130% AFR 5.79% 5.71% 5.67% 5.64% REV. RUL. 2010-6 TABLE 2 Adjusted AFR for February 2010 Period for Compounding ____________________________________________ Annual Semiannual Quarterly Monthly ____________________________________________ Short-term adjusted AFR .54% .54% .54% .54% Mid-term adjusted AFR 1.84% 1.83% 1.83% 1.82% Long-term adjusted AFR 4.02% 3.98% 3.96% 3.95% REV. RUL. 2010-6 TABLE 3 Rates Under Section 382 for February 2010 Adjusted federal long-term rate for the current month 4.02% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) 4.14% REV. RUL. 2010-6 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for February 2010 Note: Under Section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, and before December 31, 2013, shall not be less than 9%. Appropriate percentage for the 70% present value low-income housing credit 7.84% Appropriate percentage for the 30% present value low-income housing credit 3.36% REV. RUL. 2010-6 TABLE 5 Rate Under Section 7520 for February 2010 Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 3.4%
