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IRS Announces Applicable Federal Rates For December.

NOV. 17, 2005

Rev. Rul. 2005-77; 2005-2 C.B. 1

DATED NOV. 17, 2005
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Citations: Rev. Rul. 2005-77; 2005-2 C.B. 1

Rev. Rul. 2005-77

This revenue ruling provides various prescribed rates for federal income tax purposes for December 2005 (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 contains the 2006 interest rate for sections 846 and 807.

                       REV. RUL. 2005-77 TABLE 1

 

 

           Applicable Federal Rates (AFR) for December 2005

 

 

                                     Period for Compounding

 

                                     ______________________

 

                          Annual     Semiannual    Quarterly     Monthly

 

                          ______     __________    _________     _______

 

                                            Short-term

 

                                            __________

 

 AFR                      4.34%         4.29%        4.27%        4.25%

 

 110% AFR                 4.78%         4.72%        4.69%        4.67%

 

 120% AFR                 5.22%         5.15%        5.12%        5.10%

 

 130% AFR                 5.66%         5.58%        5.54%        5.52%

 

 

                                             Mid-term

 

                                             ________

 

 AFR                      4.52%         4.47%        4.45%        4.43%

 

 110% AFR                 4.98%         4.92%        4.89%        4.87%

 

 120% AFR                 5.43%         5.36%        5.32%        5.30%

 

 130% AFR                 5.89%         5.81%        5.77%        5.74%

 

 150% AFR                 6.82%         6.71%        6.65%        6.62%

 

 175% AFR                 7.97%         7.82%        7.75%        7.70%

 

 

                                            Long-term

 

                                            _________

 

 AFR                      4.79%         4.73%        4.70%        4.68%

 

 110% AFR                 5.27%         5.20%        5.17%        5.14%

 

 120% AFR                 5.76%         5.68%        5.64%        5.61%

 

 130% AFR                 6.24%         6.15%        6.10%        6.07%

 

 

                       REV. RUL. 2005-77 TABLE 2

 

 

                    Adjusted AFR for December 2005

 

 

                                      Period for Compounding

 

                                      ______________________

 

                          Annual     Semiannual    Quarterly    Monthly

 

                          ______     __________    _________    _______

 

 Short-term

 

 adjusted AFR             2.98%         2.96%         2.95%      2.94%

 

 

 Mid-term

 

 adjusted AFR             3.51%         3.48%         3.46%      3.46%

 

 

 Long-term

 

 adjusted AFR             4.40%         4.35%         4.33%      4.31%

 

 

                       REV. RUL. 2005-77 TABLE 3

 

 

               Rates Under Section 382 for December 2005

 

 

 Adjusted federal long-term rate for the current month           4.40%

 

 

 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.)          4.40%

 

 

                      REV. RUL. 2005-77  TABLE 4

 

 

   Appropriate Percentages Under Section 42(b)(2) for December 2005

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                  8.08%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                  3.46%

 

 

                       REV. RUL. 2005-77 TABLE 5

 

 

               Rate Under Section 7520 for December 2005

 

 

 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                                            5.4%

 

 

                       REV. RUL. 2005-77 TABLE 6

 

 

 Applicable rate of interest for 2006  for purposes of section

 

 846 and 807                                                     3.98%
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