January CMFR - 7.4%

January CMFR - 7.4%

News story posted in Revenue Rulings on 22 December 1999| comments
audience: National Publication | last updated: 18 May 2011
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Summary

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 2000-1 indicates the charitable mid-term federal rate under Code Section 7520 for the month of January is 7.4%.

PGDC SUMMARY:

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 2000-1 indicates that the charitable mid-term federal rate under Code Section 7520 for the month of January is 7.4%.

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 January 2000 (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)(2) for buildings placed in service during the current month. 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. Finally, Table 6 contains the deemed rate of return for transfers made during calendar year 2000 to pooled income funds described in section 642(c)(5) that have been in existence for less than 3 taxable years immediately preceding the taxable year in which the transfer is made.

                      REV. RUL. 2000-1  TABLE 1
           Applicable Federal Rates (AFR) for January 2000
                       Period for Compounding
                    Annual     Semiannual   Quarterly   Monthly
                    ______     __________   _________   _______
   Short-Term
   __________
         AFR        5.88%        5.80%       5.76%       5.73%
    110% AFR        6.48%        6.38%       6.33%       6.30%
    120% AFR        7.08%        6.96%       6.90%       6.86%
    130% AFR        7.68%        7.54%       7.47%       7.42%
   Mid-Term
   ________
         AFR        6.21%        6.12%       6.07%       6.04%
    110% AFR        6.84%        6.73%       6.67%       6.64%
    120% AFR        7.47%        7.34%       7.27%       7.23%
    130% AFR        8.12%        7.96%       7.88%       7.83%
    150% AFR        9.39%        9.18%       9.08%       9.01%
    175% AFR       11.00%       10.71%      10.57%      10.48%
   Long-Term
   _________
         AFR        6.45%        6.35%       6.30%       6.27%
    110% AFR        7.11%        6.99%       6.93%       6.89%
    120% AFR        7.77%        7.62%       7.55%       7.50%
                      REV. RUL. 2000-1 TABLE 2
                    Adjusted AFR for January 1999
                       Period for Compounding
                   Annual   Semiannual   Quarterly   Monthly
                   ______   __________   _________   _______
    Short-term
    adjusted AFR    4.01%    3.97%        3.95%        3.94%
    Mid-term
    adjusted AFR    4.66%    4.61%        4.58%        4.57%
    Long-term
    adjusted AFR    5.59%    5.51%        5.47%        5.45%
                      REV. RUL. 2000-1 TABLE 3
              Rates Under Section 382 for January 2000
     Adjusted federal long-term rate for the current month  5.59%
     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.)                                     5.72%
                      REV. RUL. 2000-1 TABLE 4
           Appropriate Percentages Under Section 42(b)(2)
                          for January 2000
      Appropriate percentage for the 70% present
      value low-income housing credit                       8.48%
      Appropriate percentage for the 30% present
      value low-income housing credit                       3.64%
                    REV. RUL. 2000-1 TABLE 5
              Rate Under Section 7520 for January 2000
      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      7.4%
                    REV. RUL. 2000-1 TABLE 6
    Deemed Rate for Transfers to New Pooled Income Funds During 2000
    Deemed rate of return for transfers during 2000 to pooled
    income funds that have been in existence for less than 3
    taxable years                                           6.80%


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