Tax Notes logo
HOMETax Notes ResearchFederalIRS Guidancerevenue rulings

IRS Announces Applicable Federal Rates For December.

NOV. 20, 2002

Rev. Rul. 2002-81; 2002-2 C.B. 928

DATED NOV. 20, 2002
DOCUMENT ATTRIBUTES
Citations: Rev. Rul. 2002-81; 2002-2 C.B. 928

Rev. Rul. 2002-81

This revenue ruling provides various prescribed rates for federal income tax purposes for December 2002 (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 2003 interest rate for sections 846 and 807.

                       REV. RUL. 2002-81 TABLE 1

 

 

          Applicable Federal Rates (AFR) for December 2002

 

 

                     Period for Compounding

 

 

                     Annual     Semiannual   Quarterly   Monthly

 

 

    Short-Term

 

          AFR        1.84%        1.83%       1.83%       1.82%

 

     110% AFR        2.02%        2.01%       2.00%       2.00%

 

     120% AFR        2.21%        2.20%       2.19%       2.19%

 

     130% AFR        2.39%        2.38%       2.37%       2.37%

 

 

    Mid-Term

 

 

          AFR        3.31%        3.28%       3.27%       3.26%

 

     110% AFR        3.64%        3.61%       3.59%       3.58%

 

     120% AFR        3.98%        3.94%       3.92%       3.91%

 

     130% AFR        4.31%        4.26%       4.24%       4.22%

 

     150% AFR        4.98%        4.92%       4.89%       4.87%

 

     175% AFR        5.82%        5.74%       5.70%       5.67%

 

 

    Long-Term

 

 

          AFR        4.92%        4.86%       4.83%       4.81%

 

     110% AFR        5.42%        5.35%       5.31%       5.29%

 

     120% AFR        5.91%        5.83%       5.79%       5.76%

 

     130% AFR        6.42%        6.32%       6.27%       6.24%

 

 

                       REV. RUL. 2002-81 TABLE 2

 

 

                    Adjusted AFR for December 2002

 

 

                     Period for Compounding

 

 

                    Annual   Semiannual   Quarterly   Monthly

 

 

     Short-term

 

     adjusted AFR    1.92%    1.91%        1.91%        1.90%

 

 

     Mid-term

 

     adjusted AFR    3.16%    3.14%        3.13%        3.12%

 

 

     Long-term

 

     adjusted AFR    4.65%    4.60%        4.57%        4.56%

 

 

                 REV. RUL. 2002-81 TABLE 3

 

 

     Rates Under Section 382 for November 2002

 

 adjusted federal long-term rate for the current month  4.65%

 

 

 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.)                                     4.65%

 

 

               REV. RUL. 2002-81 TABLE 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for December 2002

 

 

 Appropriate percentage for the 70% present

 

 value low-income housing credit                        7.95%

 

 

 Appropriate percentage for the 30% present

 

 value low-income housing credit                        3.41%

 

 

                    REV. RUL. 2002-81 TABLE 5

 

 

               Rate Under Section 7520 for December 2002

 

 

 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      4.0%

 

 

                    REV. RUL. 2002-81 TABLE 6

 

 

 Applicable rate of interest for 2003

 

 for purposes of section 846 and 807                    5.27%
DOCUMENT ATTRIBUTES
Copy RID