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 2007-70 indicates the charitable federal midterm rate under section 7520 for December 2007 is 5.0%; down 0.2% from the November and October rates of 5.2%.
Rev. Rul. 2007-70; 2007-50 IRB 1
Full Text:
Nov. 20, 2007
This revenue ruling provides various prescribed rates for federal income tax purposes for December 2007 (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 contains the 2008 interest rate for sections 846 and 807.
REV. RUL. 2007-70 TABLE 1
Applicable Federal Rates (AFR) for December 2007
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
AFR 3.88% 3.84% 3.82% 3.81% 110% AFR 4.26% 4.22% 4.20% 4.18% 120% AFR 4.66% 4.61% 4.58% 4.57% 130% AFR 5.05% 4.99% 4.96% 4.94%
Mid-term
AFR 4.13% 4.09% 4.07% 4.06% 110% AFR 4.55% 4.50% 4.47% 4.46% 120% AFR 4.97% 4.91% 4.88% 4.86% 130% AFR 5.39% 5.32% 5.29% 5.26% 150% AFR 6.23% 6.14% 6.09% 6.06% 175% AFR 7.29% 7.16% 7.10% 7.06%
Long-term
AFR 4.72% 4.67% 4.64% 4.63% 110% AFR 5.21% 5.14% 5.11% 5.09% 120% AFR 5.68% 5.60% 5.56% 5.54% 130% AFR 6.16% 6.07% 6.02% 5.99%
REV. RUL. 2007-70 TABLE 2
Adjusted AFR for December 2007
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 3.40% 3.37% 3.36% 3.35%
Mid-term adjusted AFR 3.67% 3.64% 3.62% 3.61%
Long-term adjusted AFR 4.34% 4.29% 4.27% 4.25%
REV. RUL. 2007-70 TABLE 3
Rates Under Section 382 for December 2007
Adjusted federal long-term rate for the current month 4.34%
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.) 4.49%
REV. RUL. 2007-70 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for December 2007
Appropriate percentage for the 70% present value low-income housing credit 8.03%
Appropriate percentage for the 30% present value low-income housing credit 3.44%
REV. RUL. 2007-70 TABLE 5
Rate Under Section 7520 for December 2007
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 5.0%
REV. RUL. 2007-70 TABLE 6
Applicable rate of interest for 2008 for purposes of section 846 and 807 4.06%