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FARM PROPERTY SPECIAL USE VALUATION INTEREST RATES FOR 1986 ARE SET FORTH

JUN. 30, 1986

Rev. Rul. 86-85; 1986-1 C.B. 299

DATED JUN. 30, 1986

DOCUMENT ATTRIBUTES

Institutional Authors
Internal Revenue Service
Code Sections
Section 2032A
Jurisdictions
United States
Language
English
Tax Analysts Electronic Citation
86 TNT 129-9

Citations: Rev. Rul. 86-85; 1986-1 C.B. 299

Rev. Rul. 86-85

This revenue ruling contains a list of the average annual effective interest rates on new Federal Land Bank loans. Under section 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Federal Land Bank loans are used in computing the special use value of real property used as a farm for which an election is made under section 2032A. This revenue ruling also contains a list of the states within each land bank district. The rates in this revenue ruling may be used by estates that value farmland under section 2032A as of a date in 1986.

Average annual effective interest rates, calculated in accordance with section 2032A(e)(7)(A) of the Code and section 20.2032A-4(e) of the Estate Tax Regulations, to be used under section 2032A(e)(7)(A)(ii) are as follows:

Federal Land Bank District Year of valuation

in which property is located 1986

Baltimore 12.82

Columbia 12.14

Texas (Formerly Houston) 11.71

Louisville 12.86

Jackson (Formerly New Orleans 12.30

Omaha 12.99

Sacramento 12.31

St. Louis 12.65

St. Paul 12.46

Spokane 12.51

Springfield 12.20

Wichita 12.77

Federal Land Bank District:

District States

Baltimore Delaware, District of Columbia,

Maryland, Pennsylvania, Virginia,

West Virginia.

Columbia Florida, Georgia, North Carolina,

South Carolina.

Texas Texas.

Louisville Indiana, Kentucky, Ohio, Tennessee.

Jackson Alabama, Louisiana, Mississippi.

Omaha Iowa, Nebraska, South Dakota,

Wyoming.

Sacramento Arizona, California, Hawaii,

Nevada, Utah.

St. Louis Arkansas, Illinois, Missouri.

St. Paul Michigan, Minnesota, North Dakota,

Wisconsin.

Spokane Alaska, Idaho, Montana, Oregon,

Washington.

Springfield Connecticut, Maine, Massachusetts,

New Hampshire, New Jersey, New

York, Rhode Island, Vermont

Wichita Colorado, Kansas, New Mexico,

Oklahoma.

Rev. Rul. 81-170, 1981-1 C.B. 454, which sets forth rates for several prior years, contains an illustrative computation of an average annual effective interest rate. The rates applicable in the case of valuations for 1982 are listed in Rev. Rul. 82-104, 1982-1 C.B. 129. The rates applicable in the case of valuations for 1983 are listed in Rev. Rul. 83-71, 1983-1 C.B. 227. The rates applicable in the case of valuations for 1984 are listed in Rev. Rul. 84-119, 1984-2 C.B. 193, and for valuations in 1985 in Rev. Rul. 85-92. 1985-2 C.B. 198.

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