Rev. Rul. 83-71, 1983-1 C.B. 227

Internal Revenue Service
Revenue Ruling

SPECIAL USE VALUATION; FARMS; INTEREST RATES

Published: April 25, 1983

26 CFR 20.2032A-4: Method of valuing farm real property

Special use valuation; farms; interest rates. The interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents dying in 1983.

ISSUE

This revenue ruling contains a list, applicable for estates of decedents

dying in 1983, of the average annual effective rates on new Federal Land Bank loans to be used under section 2032A(e)(7)(A)(ii) of the Internal Revenue Code in computing the special use value of real property used as a farm for which an election is made under section 2032A. This revenue ruling also contains a list of the states within each land bank district.

Average annual effective interest rates, calculated in accordance with section 2032A(e)(7)(A) of the Code and 20.2032A-4(e) of the Estate Tax Regulations, to be used under section 2032A(e)(7)(a)(ii) are as follows:

Federal Land Bank District in which property is located Year of Death 1983
Baltimore 11.82
Columbia 10.93
Houston 10.88
Louisville 11.39
New Orleans 11.13
Omaha 11.52
Sacramento 11.35
St. Louis 11.71
St. Paul 11.17
Spokane 11.31
Springfield 10.71
Wichita 11.65

Federal Land States
Bank
Districts:
District
Baltimore ............. Delaware, District of Columbia, Maryland, Pennsylvania,
Virginia, West Virginia.
Columbia .................... Florida, Georgia, North Carolina, South Carolina.
Houston ................................................................ Texas.
Louisville ................................ Indiana, Kentucky, Ohio, Tennessee.
New Orleans .................................. Alabama, Louisiana, Mississippi.
Omaha .................................. Iowa, Nebraska, South Dakota, Wyoming.
Sacramento ......................... Arizona, California, Hawaii, Nevada, Utah.
St. Louis ....................................... Arkansas, Illinois, Missouri.
St. Paul ........................ Michigan, Minnesota, North Dakota, Wisconsin.
Spokane ........................... Alaska, Idaho, Montana, Oregon, Washington.
Springfield ..... Connecticut, Maine, Massachusetts, New Hampshire, New Jersey,
New York, Rhode Island, Vermont.
Wichita ............................... Colorado, Kansas, New Mexico, Oklahoma.

The rates applicable in the case of decedents dying in 1977, 1978, 1979, 1980, or 1981 are listed in Rev. Rul. 81-170, 1981-1 C.B. 454. Rev. Rul. 81- 170 also contains an illustrative computation of an average annual effective interest rate. The rates applicable in the case of decedents dying in 1982 are listed in Rev. Rul. 82-104, 1982-1 C.B. 129.

Rev. Rul. 83-71, 1983-1 C.B. 227.