October CMFR - 7.2%

October CMFR - 7.2%

News story posted in Revenue Rulings on 21 September 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 99-41 indicates that the charitable mid-term federal rate under Code Section 7520 for the month of October is 7.2%.

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 99-41 indicates that the charitable mid-term federal rate under Code Section 7520 for the month of October is 7.2%.

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 October 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. 99-41   TABLE 1
           Applicable Federal Rates (AFR) for October 1999
                    Period for Compounding
                    ______________________
                    Annual     Semiannual   Quarterly   Monthly
                    ______     __________   _________   _______
 
  Short-Term
   __________
         AFR        5.54%        5.47%       5.43%       5.41%
    110% AFR        6.11%        6.02%       5.98%       5.95%
    120% AFR        6.67%        6.56%       6.51%       6.47%
    130% AFR        7.24%        7.11%       7.05%       7.01%
 
   Mid-Term
   ________
         AFR        6.02%        5.93%       5.89%       5.86%
    110% AFR        6.63%        6.52%       6.47%       6.43%
    120% AFR        7.25%        7.12%       7.06%       7.02%
    130% AFR        7.86%        7.71%       7.64%       7.59%
    150% AFR        9.10%        8.90%       8.80%       8.74%
    175% AFR       10.65%       10.38%      10.25%      10.16%
 
   Long-Term
   _________
         AFR        6.31%        6.21%       6.16%       6.13%
    110% AFR        6.95%        6.83%       6.77%       6.73%
    120% AFR        7.59%        7.45%       7.38%       7.34%
    130% AFR        8.23%        8.07%       7.99%       7.94%
                   REV. RUL. 99-41 TABLE 2
                   Adjusted AFR for October 1999
                   Period for Compounding
                   ______________________
                   Annual   Semiannual   Quarterly   Monthly
                   ______   __________   _________   _______
    Short-term
    adjusted AFR    3.79%    3.75%        3.73%        3.72%
    Mid-term
    adjusted AFR    4.55%    4.50%        4.47%        4.46%
    Long-term
    adjusted AFR    5.45%    5.38%        5.34%        5.32%
                    REV. RUL. 99-41 TABLE 3
          Rates Under Section 382 for October 1999
     Adjusted federal long-term rate 
     for the current month                             5.45%
     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.)                  5.45%
                       REV. RUL. 99-41 TABLE 4
          Appropriate Percentages Under Section 42(b)(2)
                        for October 1999
      Appropriate percentage for the 70% present
      value low-income housing credit                  8.45%
      Appropriate percentage for the 30% present
      value low-income housing credit                  3.62%
                       REV. RUL. 99-41 TABLE 5
            Rate Under Section 7520 for October 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                            7.2%


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