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IRS ANNOUNCES APPLICABLE FEDERAL RATES FOR DECEMBER.

NOV. 21, 1995

Rev. Rul. 95-79; 1995-2 C.B. 134

DATED NOV. 21, 1995
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Citations: Rev. Rul. 95-79; 1995-2 C.B. 134

Rev. Rul. 95-79

This revenue ruling provides various prescribed rates for federal income tax purposes for December 1995 (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 1996 for purposes of sections 846 and 807.

                        REV. RUL. 95-79 TABLE 1

 

 

           Applicable Federal Rates (AFR) for December 1995

 

 

                                   Period for Compounding

 

 

                     Annual     Semiannual   Quarterly   Monthly

 

                     ______     __________   _________   _______

 

 

    Short-Term

 

    __________

 

 

          AFR        5.65%        5.57%       5.53%       5.51%

 

     110% AFR        6.22%        6.13%       6.08%       6.05%

 

     120% AFR        6.79%        6.68%       6.63%       6.59%

 

 

    Mid-Term

 

 

          AFR        5.91%        5.83%       5.79%       5.76%

 

     110% AFR        6.51%        6.41%       6.36%       6.33%

 

     120% AFR        7.12%        7.00%       6.94%       6.90%

 

     150% AFR        8.94%        8.75%       8.66%       8.59%

 

     175% AFR       10.46%       10.20%      10.07%       9.99%

 

 

    Long-Term

 

    _________

 

 

          AFR        6.36%        6.26%       6.21%       6.18%

 

     110% AFR        7.01%        6.89%       6.83%       6.79%

 

     120% AFR        7.65%        7.51%       7.44%       7.40%

 

 

                       REV. RUL. 95-79  TABLE 2

 

 

                    Adjusted AFR for December 1995

 

 

                       Period for Compounding

 

                       ______________________

 

 

                    Annual   Semiannual   Quarterly   Monthly

 

                    ______   __________   _________   _______

 

 

     Short-term

 

     adjusted AFR    3.82%    3.78%        3.76%        3.75%

 

 

     Mid-term

 

     adjusted AFR    4.44%    4.39%        4.37%        4.35%

 

 

     Long-term

 

     adjusted AFR    5.46%    5.39%        5.35%        5.33%

 

 

                        REV. RUL. 95-79 TABLE 3

 

 

      Rates Under Section 382 for December 1995

 

      Adjusted federal long-term rate for the current month    5.46%

 

 

      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.)                                       5.75%

 

 

                        REV. RUL. 95-79 TABLE 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for December 1995

 

 

       Appropriate percentage for the 70% present

 

       value low-income housing credit                         8.44%

 

 

       Appropriate percentage for the 30% present

 

       value low-income housing credit                         3.62%

 

 

                        REV. RUL. 95-79 TABLE 5

 

 

               Rate Under Section 7520 for December 1995

 

 

       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%

 

 

                        REV. RUL. 95-79 TABLE 6

 

 

                   Rates Under Sections 846 and 807

 

 

     Applicable rate of interest for 1996 for purposes of

 

     sections 846 and 807                                      6.63%
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