June CMFR Increases to 6.4%

June CMFR Increases to 6.4%

News story posted in Revenue Rulings on 21 May 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 99-25 indicates that the charitable mid-term federal rate under Code Section 7520 for the month of June is 6.4%.

REV. RUL. 99-25

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 99-25 indicates that the charitable mid-term federal rate under Code Section 7520 for the month of June is 6.4%.

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 June 1999 (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. 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. 99-25 TABLE 1 
            Applicable Federal Rates (AFR) for June 1999 
                    Period for Compounding
                   ______________________ 
                    Annual     Semiannual   Quarterly   Monthly
                    ______     __________   _________   _______
Short-Term
__________
       AFR           4.98%        4.92%       4.89%      4.87%
  110% AFR           5.48%        5.41%       5.37%      5.35%
  120% AFR           5.99%        5.90%       5.86%      5.83%
  130% AFR           6.50%        6.40%       6.35%      6.32% 
Mid-Term
________
      AFR            5.37%        5.30%       5.27%      5.24%
 110% AFR            5.91%        5.83%       5.79%      5.76%
 120% AFR            6.46%        6.36%       6.31%      6.28%
 130% AFR            7.01%        6.89%       6.83%      6.79%
 150% AFR            8.11%        7.95%       7.87%      7.82%
 175% AFR            9.50%        9.28%       9.17%      9.11% 
Long-Term
________
       AFR           5.79%        5.71%       5.67%      5.64%
  110% AFR           6.38%        6.28%       6.23%      6.20%
  120% AFR           6.97%        6.85%       6.79%      6.75%
  130% AFR           7.56%        7.42%       7.35%      7.31% 
                       REV. RUL. 99-25 TABLE 2 
                     Adjusted AFR for June 1999 
                       Period for Compounding
                       ______________________ 
                       Annual   Semiannual   Quarterly   Monthly
                       ______   __________   _________   _______
Short-term
adjusted AFR            3.32%      3.29%       3.28%      3.27% 
Mid-term
adjusted AFR            3.91%      3.87%       3.85%      3.84% 
Long-term
adjusted AFR            4.85%      4.79%       4.76%      4.74% 
                       REV. RUL. 99-25 TABLE 3 
Rates Under Section 382 for June 1999
Adjusted federal long-term rate for the current month    4.85% 
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.)                                       4.85% 
                       REV. RUL. 99-25 TABLE 4 
           Appropriate Percentages Under Section 42(b)(2)
                            for June 1999 
Appropriate percentage for the 70% present
value low-income housing credit                          8.30% 
Appropriate percentage for the 30% present
value low-income housing credit                          3.56% 
                       REV. RUL. 99-25 TABLE 5 
                Rate Under Section 7520 for June 1999 
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        6.4%


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7520 Rates: December 26% November 2.4% October 2.2%

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