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IRS RELEASES APPLICABLE FEDERAL RATES FOR DECEMBER.

NOV. 20, 1990

Rev. Rul. 90-99; 1990-2 C.B. 199

DATED NOV. 20, 1990
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Citations: Rev. Rul. 90-99; 1990-2 C.B. 199

Rev. Rul. 90-99

This revenue ruling provides various prescribed rates for federal income tax purposes for December 1990 (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 the annual rate for purposes of section 846 and section 807.

                                Table 1

 

 

           Applicable Federal Rates (AFR) for December 1990

 

 

                              Period for Compounding

 

                              ______________________

 

 

                Annual    Semiannual     Quarterly      Monthly

 

                ______    __________     _________      _______

 

 

 Short-Term

 

 __________

 

 

       AFR       7.80%       7.65%          7.58%         7.53%

 

  110% AFR       8.60%       8.42%          8.33%         8.28%

 

  120% AFR       9.39%       9.18%          9.08%         9.01%

 

 

 Mid-term

 

 ________

 

 

       AFR       8.50%       8.33%          8.25%         8.19%

 

  110% AFR       9.37%       9.16%          9.06%         8.99%

 

  120% AFR      10.25%      10.00%          9.88%         9.80%

 

  150% AFR      12.89%      12.50%         12.31%        12.19%

 

  175% AFR      15.11%      14.58%         14.32%        14.16%

 

 

 Long-Term

 

 _________

 

 

       AFR       8.87%       8.68%          8.59%         8.53%

 

  110% AFR       9.78%       9.55%          9.44%         9.37%

 

  120% AFR      10.69%      10.42%         10.29%        10.20%

 

 

                                Table 2

 

 

                    Adjusted AFR for December 1990

 

 

                              Period for Compounding

 

                              ______________________

 

 

                Annual    Semiannual     Quarterly      Monthly

 

                ______    __________     _________      _______

 

 

 Short-term

 

 adjusted AFR    6.00%       5.91%          5.87%         5.84%

 

 

 Mid-term

 

 adjusted AFR    6.35%       6.25%          6.20%         6.17%

 

 

 Long-term

 

 adjusted AFR    7.08%       6.96%          6.90%         6.86%

 

 

                                Table 3

 

 

               Rates Under Section 382 for December 1990

 

 

 Adjusted federal long-term rate for the current month     7.08%

 

 

 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).                                        7.21%

 

 

                                Table 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for December 1990

 

 

 Appropriate percentage for the 70% present

 

 value low-income housing credit                           9.06%

 

 

 Appropriate percentage for the 30% present

 

 value low-income housing credit                           3.88%

 

 

                                Table 5

 

 

               Rate under section 7520 for December 1990

 

 

 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        10.2%

 

 

                                Table 6

 

 

                    Rate Under Sections 846 and 807

 

 

 Applicable Rate of Interest for 1991 for

 

 purposes of sections 846 and 807.                         8.42%
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