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IRS Announces Applicable Federal Rates For December.

NOV. 18, 2003

Rev. Rul. 2003-122; 2003-2 C.B. 1179

DATED NOV. 18, 2003
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Citations: Rev. Rul. 2003-122; 2003-2 C.B. 1179

Rev. Rul. 2003-122

[1] This revenue ruling provides various prescribed rates for federal income tax purposes for December 2003 (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 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 2004 interest rate for sections 846 and 807.

                      REV. RUL. 2003-122 TABLE 1

 

 

           Applicable Federal Rates (AFR) for December 2003

 

 

                     Period for Compounding

 

 

                    Annual     Semiannual   Quarterly    Monthly

 

                    ____________________________________________

 

 

 Short-Term

 

 

        AFR          1.68%        1.67%       1.67%       1.66%

 

   110% AFR          1.85%        1.84%       1.84%       1.83%

 

   120% AFR          2.01%        2.00%       2.00%       1.99%

 

   130% AFR          2.18%        2.17%       2.16%       2.16%

 

 

 Mid-Term

 

 

        AFR          3.55%        3.52%       3.50%       3.49%

 

   110% AFR          3.91%        3.87%       3.85%       3.84%

 

   120% AFR          4.26%        4.22%       4.20%       4.18%

 

   130% AFR          4.63%        4.58%       4.55%       4.54%

 

   150% AFR          5.35%        5.28%       5.25%       5.22%

 

   175% AFR          6.25%        6.16%       6.11%       6.08%

 

 

 Long-Term

 

 

        AFR          5.12%        5.06%       5.03%       5.01%

 

   110% AFR          5.65%        5.57%       5.53%       5.51%

 

   120% AFR          6.16%        6.07%       6.02%       5.99%

 

   130% AFR          6.69%        6.58%       6.53%       6.49%

 

 

                      REV. RUL. 2003-122  TABLE 2

 

 

                    Adjusted AFR for December 2003

 

 

                     Period for Compounding

 

 

                     Annual   Semiannual   Quarterly   Monthly

 

                     _________________________________________

 

 

 Short-term

 

 adjusted AFR        1.37%       1.37%        1.37%     1.37%

 

 

 Mid-term

 

 adjusted AFR        2.75%       2.73%        2.72%     2.71%

 

 

 Long-term

 

 adjusted AFR        4.58%       4.53%        4.50%     4.49%

 

 

                      REV. RUL. 2003-122 TABLE 3

 

 

               Rates Under Section 382 for December 2003

 

 

      Adjusted federal long-term rate for the current month   4.58%

 

 

      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.)                                      4.74%

 

 

                     REV. RUL. 2003-122   TABLE 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for December 2003

 

 

      Appropriate percentage for the 70% present

 

      value low-income housing credit                         8.01%

 

 

      Appropriate percentage for the 30% present

 

      value low-income housing credit                         3.43%

 

 

                      REV. RUL. 2003-122 TABLE 5

 

 

               Rate Under Section 7520 for December 2003

 

 

      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        4.2%

 

 

                      REV. RUL. 2003-122 TABLE 6

 

 

      Applicable rate of interest for 2004

 

      for purposes of section 846 and 807                     4.82%
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