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IRS ANNOUNCES APPLICABLE FEDERAL RATES FOR DECEMBER.

NOV. 21, 1994

Rev. Rul. 94-73; 1994-2 C.B. 197

DATED NOV. 21, 1994
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Citations: Rev. Rul. 94-73; 1994-2 C.B. 197

Rev. Rul. 94-73

This revenue ruling provides various prescribed rates for federal income tax purposes for December 1994 (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 applicable rate of interest for 1995 for purposes of sections 846 and 807.

                        REV. RUL. 94-73 TABLE 1

 

           Applicable Federal Rates (AFR) for December 1994

 

 

                                  Period for Compounding

 

                     ___________________________________________

 

                     Annual     Semiannual   Quarterly   Monthly

 

 _____________________________________________________________________

 

 

 Short-Term

 

 

      AFR            6.66%        6.55%       6.50%       6.46%

 

 110% AFR            7.34%        7.21%       7.15%       7.10%

 

 120% AFR            8.01%        7.86%       7.78%       7.73%

 

 

 Mid-Term

 

 

      AFR            7.74%        7.60%       7.53%       7.48%

 

 110% AFR            8.53%        8.36%       8.27%       8.22%

 

 120% AFR            9.33%        9.12%       9.02%       8.95%

 

 150% AFR           11.72%       11.40%      11.24%      11.14%

 

 175% AFR           13.74%       13.30%      13.09%      12.95%

 

 

 Long-Term

 

 

      AFR            8.23%        8.07%       7.99%       7.94%

 

 110% AFR            9.08%        8.88%       8.78%       8.72%

 

 120% AFR            9.91%        9.68%       9.57%       9.49%

 

 _____________________________________________________________________

 

 

                       REV. RUL. 94-73  TABLE 2

 

                    Adjusted AFR for December 1994

 

 

                            Period for Compounding

 

                    _________________________________________

 

                    Annual   Semiannual   Quarterly   Monthly

 

 _____________________________________________________________________

 

 

 Short-term

 

 adjusted AFR        4.52%      4.47%        4.45%      4.43%

 

 

 Mid-term

 

 adjusted AFR        5.48%      5.41%        5.37%      5.35%

 

 

 Long-term

 

 adjusted AFR        6.60%      6.49%        6.44%      6.40%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 94-73 TABLE 3

 

               Rates Under Section 382 for December 1994

 

 

 Adjusted federal long-term rate for the current month    6.60%

 

 

 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.)                                       6.60%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 94-73 TABLE 4

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for December 1994

 

 

 Appropriate percentage for the 70% present

 

 value low-income housing credit                           8.89%

 

 

 Appropriate percentage for the 30% present

 

 value low-income housing credit                           3.81%

 

 _____________________________________________________________________

 

 

                         REV. RUL. 94-73 TABLE 5

 

               Rate Under Section 7520 for December 1994

 

 

 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          9.4%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 94-73 TABLE 6

 

                   Rates Under Sections 846 and 807

 

 

 Applicable rate of interest for 1995 for purposes of

 

 sections 846 and 807                                       6.99%

 

 _____________________________________________________________________
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