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IRS Announces Applicable Federal Rates For December.

NOV. 20, 2007

Rev. Rul. 2007-70; 2007-50 I.R.B. 1158

DATED NOV. 20, 2007
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Citations: Rev. Rul. 2007-70; 2007-50 I.R.B. 1158

Rev. Rul. 2007-70

This revenue ruling provides various prescribed rates for federal income tax purposes for December 2007 (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 2008 interest rate for sections 846 and 807.

 REV. RUL. 2007-70 TABLE 1

 

 

           Applicable Federal Rates (AFR) for December 2007

 

 

                        Period for Compounding

 

                  Annual    Semiannual   Quarterly    Monthly

 

 

                              Short-term

 

 

 AFR               3.88%       3.84%       3.82%       3.81%

 

 110% AFR          4.26%       4.22%       4.20%       4.18%

 

 120% AFR          4.66%       4.61%       4.58%       4.57%

 

 130% AFR          5.05%       4.99%       4.96%       4.94%

 

 

                               Mid-term

 

 

 AFR               4.13%       4.09%       4.07%       4.06%

 

 110% AFR          4.55%       4.50%       4.47%       4.46%

 

 120% AFR          4.97%       4.91%       4.88%       4.86%

 

 130% AFR          5.39%       5.32%       5.29%       5.26%

 

 150% AFR          6.23%       6.14%       6.09%       6.06%

 

 175% AFR          7.29%       7.16%       7.10%       7.06%

 

 

                               Long-term

 

 

 AFR               4.72%       4.67%       4.64%       4.63%

 

 110% AFR          5.21%       5.14%       5.11%       5.09%

 

 120% AFR          5.68%       5.60%       5.56%       5.54%

 

 130% AFR          6.16%       6.07%       6.02%       5.99%

 

 

                       REV. RUL. 2007-70 TABLE 2

 

 

                    Adjusted AFR for December 2007

 

 

                        Period for Compounding

 

 

                   Annual     Semiannual    Quarterly    Monthly

 

 

                              Short-term

 

 adjusted AFR      3.40%         3.37%        3.36%       3.35%

 

 

 Mid-term

 

 adjusted AFR      3.67%         3.64%        3.62%       3.61%

 

 

 Long-term

 

 adjusted AFR      4.34%         4.29%        4.27%       4.25%

 

 

                       REV. RUL. 2007-70 TABLE 3

 

 

               Rates Under Section 382 for December 2007

 

 

 Adjusted federal long-term rate for the current month            4.34%

 

 

 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.)           4.49%

 

 

                       REV. RUL. 2007-70 TABLE 4

 

 

   Appropriate Percentages Under Section 42(b)(2) for December 2007

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                   8.03%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                   3.44%

 

 

                       REV. RUL. 2007-70 TABLE 5

 

 

               Rate Under Section 7520 for December 2007

 

 

 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                               5.0%

 

 

                       REV. RUL. 2007-70 TABLE 6

 

 

 Applicable rate of interest for 2008 for purposes of section

 

 846 and 807                                                      4.06%
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