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IRS Announces Applicable Federal Rates For May.

APR. 18, 2008

Rev. Rul. 2008-24; 2008-18 I.R.B. 861

DATED APR. 18, 2008
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Citations: Rev. Rul. 2008-24; 2008-18 I.R.B. 861

Revenue Ruling 2008-24

 

Part I

 

 

This revenue ruling provides various prescribed rates for federal income tax purposes for May 2008 (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. Finally, 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.

 REV. RUL. 2008-24 TABLE 1

 

 

                Applicable Federal Rates (AFR) for May 2008

 

 

                          Period for Compounding

 

 

                          Annual      Semiannual      Quarterly      Monthly

 

                          ______      __________      _________      _______

 

 

                                              Short-term

 

                                              __________

 

 

 AFR                      1.64%          1.63%          1.63%         1.62%

 

 110% AFR                 1.80%          1.79%          1.79%         1.78%

 

 120% AFR                 1.97%          1.96%          1.96%         1.95%

 

 130% AFR                 2.13%          2.12%          2.11%         2.11%

 

 

                                               Mid-term

 

                                               ________

 

 

 AFR                      2.74%          2.72%          2.71%         2.70%

 

 110% AFR                 3.01%          2.99%          2.98%         2.97%

 

 120% AFR                 3.29%          3.26%          3.25%         3.24%

 

 130% AFR                 3.57%          3.54%          3.52%         3.51%

 

 150% AFR                 4.12%          4.08%          4.06%         4.05%

 

 175% AFR                 4.82%          4.76%          4.73%         4.71%

 

 

                                              Long-term

 

                                              _________

 

 

 AFR                      4.21%          4.17%          4.15%         4.13%

 

 110% AFR                 4.64%          4.59%          4.56%         4.55%

 

 120% AFR                 5.06%          5.00%          4.97%         4.95%

 

 130% AFR                 5.49%          5.42%          5.38%         5.36%

 

 

                         REV. RUL. 2008-24 TABLE 2

 

 

                         Adjusted AFR for May 2008

 

 

                          Period for Compounding

 

 

                          Annual      Semiannual      Quarterly      Monthly

 

                          ______      __________      _________      _______

 

 Short-term

 

 adjusted AFR             2.07%          2.06%          2.05%         2.05%

 

 

 Mid-term

 

 adjusted AFR             3.17%          3.15%          3.14%         3.13%

 

 

 Long-term

 

 adjusted AFR             4.71%          4.66%          4.63%         4.62%

 

 

                         REV. RUL. 2008-24 TABLE 3

 

 

                   Rates Under Section 382 for May 2008

 

 

 Adjusted federal long-term rate for the current month                4.71%

 

 

 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.)               4.71%

 

 

                        REV. RUL. 2008-24  TABLE 4

 

 

      Appropriate Percentages Under Section 42(b)(2) for May 2008

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                       7.80%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                       3.34%

 

 

                         REV. RUL. 2008-24 TABLE 5

 

 

                   Rate Under Section 7520 for May 2008

 

 

 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                                             3.2%
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