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IRS Announces Applicable Federal Rates For December.

NOV. 20, 2006

Rev. Rul. 2006-61; 2006-2 C.B. 1028

DATED NOV. 20, 2006
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Citations: Rev. Rul. 2006-61; 2006-2 C.B. 1028

Rev. Rul. 2006-61

This revenue ruling provides various prescribed rates for federal income tax purposes for December 2006 (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 2007 interest rate for sections 846 and 807.

                           REV. RUL. 2006-61 TABLE 1

 

 

               Applicable Federal Rates (AFR) for December  2006

 

 

                               Period for Compounding

 

                               ______________________

 

 

                       Annual       Semiannual      Quarterly        Monthly

 

                       ______       __________      _________        _______

 

 

                                           Short-term

 

                                           __________

 

 AFR                    4.97%          4.91%          4.88%           4.86%

 

 110% AFR               5.47%          5.40%          5.36%           5.34%

 

 120% AFR               5.98%          5.89%          5.85%           5.82%

 

 130% AFR               6.48%          6.38%          6.33%           6.30%

 

 

                                            Mid-term

 

                                            ________

 

 AFR                    4.73%          4.68%          4.65%           4.64%

 

 110% AFR               5.22%          5.15%          5.12%           5.10%

 

 120% AFR               5.70%          5.62%          5.58%           5.56%

 

 130% AFR               6.17%          6.08%          6.03%           6.00%

 

 150% AFR               7.14%          7.02%          6.96%           6.92%

 

 175% AFR               8.36%          8.19%          8.11%           8.05%

 

 

                                           Long-term

 

                                           _________

 

 AFR                    4.90%          4.84%          4.81%           4.79%

 

 110% AFR               5.39%          5.32%          5.29%           5.26%

 

 120% AFR               5.89%          5.81%          5.77%           5.74%

 

 130% AFR               6.39%          6.29%          6.24%           6.21%

 

 

                           REV. RUL. 2006-61 TABLE 2

 

 

                        Adjusted AFR for December 2006

 

 

                               Period for Compounding

 

                               ______________________

 

 

                       Annual       Semiannual      Quarterly        Monthly

 

                       ______       __________      _________        _______

 

 Short-term

 

 adjusted AFR           3.42%          3.39%          3.38%           3.37%

 

 

 Mid-term

 

 adjusted AFR           3.59%          3.56%          3.54%           3.53%

 

 

 Long-term

 

 adjusted AFR           4.14%          4.10%          4.08%           4.07%

 

 

                           REV. RUL. 2006-61 TABLE 3

 

 

                   Rates Under Section 382 for December 2006

 

 

 Adjusted federal long-term rate for the current month                4.14%

 

 

 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.)               4.22%

 

 

                           REV. RUL. 2006-61  TABLE 4

 

 

    Appropriate Percentages Under Section 42(b)(2) for December 2006

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                      8.12%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                      3.48%

 

 

                           REV. RUL. 2006-61 TABLE 5

 

 

                 Rate Under Section 7520 for December 2006

 

 

 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                                                5.8%

 

 

                           REV. RUL. 2005-61 TABLE 6

 

 

 Applicable rate of interest for 2007 for purposes of section

 

 846 and 807                                                         3.97%
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