Tax Notes logo

IRS Announces Applicable Federal Rates for December

NOV. 19, 2013

Rev. Rul. 2013-26; 2013-50 I.R.B. 628

DATED NOV. 19, 2013
DOCUMENT ATTRIBUTES
Citations: Rev. Rul. 2013-26; 2013-50 I.R.B. 628

Section 1274. -- Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.)

This revenue ruling provides various prescribed rates for federal income tax purposes for December 2013 (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)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2014, shall not be less than 9%. 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 2014 interest rate for sections 846 and 807.

                       REV. RUL. 2013-26 TABLE 1

 

            Applicable Federal Rates (AFR) for December 2013

 

 ______________________________________________________________________

 

 

                                    Period for Compounding

 

                         ______________________________________________

 

 

                         Annual   Semiannual   Quarterly    Monthly

 

 ______________________________________________________________________

 

 

                               Short-term

 

 

      AFR                 .25%        .25%        .25%        .25%

 

      110% AFR            .28%        .28%        .28%        .28%

 

      120% AFR            .30%        .30%        .30%        .30%

 

      130% AFR            .33%        .33%        .33%        .33%

 

 

                                Mid-term

 

 

      AFR                1.65%       1.64%       1.64%       1.63%

 

      110% AFR           1.81%       1.80%       1.80%       1.79%

 

      120% AFR           1.98%       1.97%       1.97%       1.96%

 

      130% AFR           2.14%       2.13%       2.12%       2.12%

 

      150% AFR           2.48%       2.46%       2.45%       2.45%

 

      175% AFR           2.89%       2.87%       2.86%       2.85%

 

 

                               Long-term

 

 

      AFR                3.32%       3.29%       3.28%       3.27%

 

      110% AFR           3.65%       3.62%       3.60%       3.59%

 

      120% AFR           3.99%       3.95%       3.93%       3.92%

 

      130% AFR           4.33%       4.28%       4.26%       4.24%

 

 

 REV. RUL. 2013-26 TABLE 2

 

                     Adjusted AFR for December 2013

 

 ______________________________________________________________________

 

 

                                    Period for Compounding

 

                         ______________________________________________

 

 

                         Annual   Semiannual   Quarterly    Monthly

 

 ______________________________________________________________________

 

 

      Short-term

 

      adjusted AFR        .25%        .25%        .25%        .25%

 

 

      Mid-term

 

      adjusted AFR       1.57%       1.56%       1.56%       1.55%

 

 

      Long-term

 

      adjusted AFR       3.32%       3.29%       3.28%       3.27%

 

 

                       REV. RUL. 2013-26 TABLE 3

 

               Rates Under Section 382 for December 2013

 

 ______________________________________________________________________

 

 

      Adjusted federal long-term rate for the current        3.32%

 

      month

 

 

      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.)                       3.50%

 

 

                       REV. RUL. 2013-26 TABLE 4

 

    Appropriate Percentages Under Section 42(b)(1) for December 2013

 

 ______________________________________________________________________

 

 

      Note: Under section 42(b)(2), the applicable percentage

 

      for non-federally subsidized new buildings placed in

 

      service after July 30, 2008, with respect to housing

 

      credit dollar amount allocations made before January 1,

 

      2014, shall not be less than 9%.

 

 

      Appropriate percentage for the 70% present value

 

      low-income housing credit                              7.57%

 

 

      Appropriate percentage for the 30% present value

 

      low-income housing credit                              3.25%

 

 

                       REV. RUL. 2013-26 TABLE 5

 

               Rate Under Section 7520 for December 2013

 

 ______________________________________________________________________

 

 

      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                                               2.0%

 

 

                       REV. RUL. 2013-26 TABLE 6

 

                    Rates Under Sections 846 and 807

 

 ______________________________________________________________________

 

 

      Applicable rate of interest for 2014 for purposes

 

      of sections 846 and 807                                1.79%
DOCUMENT ATTRIBUTES
Copy RID