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IRS ANNOUNCES APPLICABLE FEDERAL RATES FOR DECEMBER.

NOV. 21, 1996

Rev. Rul. 96-57; 1996-2 C.B. 82

DATED NOV. 21, 1996
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Citations: Rev. Rul. 96-57; 1996-2 C.B. 82

Rev. Rul. 96-57

This revenue ruling provides various prescribed rates for federal income tax purposes for December 1996 (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 1997 interest rate for sections 846 and 807.

                        REV. RUL. 96-57 TABLE 1

 

 

           Applicable Federal Rates (AFR) for December 1996

 

 _____________________________________________________________________

 

 

                              Period for Compounding

 

                    ___________________________________________

 

                    Annual     Semiannual   Quarterly   Monthly

 

 _____________________________________________________________________

 

 

 Short-Term

 

 

          AFR        5.75%        5.67%       5.63%       5.60%

 

     110% AFR        6.34%        6.24%       6.19%       6.16%

 

     120% AFR        6.92%        6.80%       6.74%       6.71%

 

     130% AFR        7.51%        7.37%       7.30%       7.26%

 

 

 Mid-Term

 

 

          AFR        6.31%        6.21%       6.16%       6.13%

 

     110% AFR        6.95%        6.83%       6.77%       6.73%

 

     120% AFR        7.59%        7.45%       7.38%       7.34%

 

     130% AFR        8.23%        8.07%       7.99%       7.94%

 

     150% AFR        9.54%        9.32%       9.21%       9.14%

 

     175% AFR       11.17%       10.87%      10.73%      10.63%

 

 

 Long-Term

 

 

          AFR        6.77%        6.66%       6.61%       6.57%

 

     110% AFR        7.46%        7.33%       7.26%       7.22%

 

     120% AFR        8.15%        7.99%       7.91%       7.86%

 

     130% AFR        8.85%        8.66%       8.57%       8.51%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 96-57 TABLE 2

 

 

                    Adjusted AFR for December 1996

 

 _____________________________________________________________________

 

 

                            Period for Compounding

 

                     ___________________________________________

 

                     Annual     Semiannual   Quarterly   Monthly

 

 _____________________________________________________________________

 

 

 Short-term

 

 adjusted AFR         3.83%        3.79%       3.77%       3.76%

 

 

 Mid-term

 

 adjusted AFR         4.58%        4.53%       4.50%       4.49%

 

 

 Long-term

 

 adjusted AFR         5.48%        5.41%       5.37%       5.35%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 96-52 TABLE 3

 

 

               Rates Under Section 382 for December 1996

 

 

 Adjusted federal long-term rate for the current month      5.48%

 

 

 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.)                                         5.64%

 

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                        REV. RUL. 96-57 TABLE 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for December 1996

 

 

 Appropriate percentage for the 70% present

 

 value low-income housing credit                            8.54%

 

 

 Appropriate percentage for the 30% present

 

 value low-income housing credit                            3.66%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 96-57 TABLE 5

 

 

               Rate Under Section 7520 for December 1996

 

 

 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           7.6%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 96-57 TABLE 6

 

 

                   Rates Under Sections 846 and 807

 

 

 Applicable rate of interest for 1997 for purposes

 

 of sections 846 and 807.                                     6.33%

 

 _____________________________________________________________________
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