Rev. Rul. 85-51

Rev. Rul. 85-51 [FN1]

FEDERAL SHORT-TERM, MID-TERM, AND LONG-TERM RATES

Published: April 29, 1985

Section 1274.-Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

(Also Sections 280G, 467, 468, 483, 7872; 1.483-1.)

  Federal short-term, mid-term, and long-term rates. For purposes of section 1274(d) of the Code, relating to certain transactions in which a debt instrument is issued for property, a table sets forth the applicable short- term, mid-term, and long-term rates for the six-month period beginning July 1, 1985, and ending December 31, 1985. These rates are also relevant to section 280G, 467, 468, and 7872.

  For purposes of section 1274(d) of the Internal Revenue Code, the short-term, mid-term, and long-term applicable federal rates (AFR) for the six-month period, July 1, 1985 through December 31, 1985, are as follows:

              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR  10.41%      10.15%     10.02%    9.94%
  110% AFR  11.48%      11.17%     11.02%   10.92%
  120% AFR  12.55%      12.18%     12.00%   11.88%
Mid-Term
       AFR  11.78%      11.45%     11.29%   11.19%
  110% AFR  13.00%      12.60%     12.41%   12.28%
  120% AFR  14.21%      13.74%     13.51%   13.36%
Long-Term
       AFR  12.07%      11.73%     11.56%   11.45%
  110% AFR  13.32%      12.90%     12.70%   12.57%
  120% AFR  14.58%      14.08%     13.84%   13.68%

FN1. Also released as News Release IR-85-37, dated April 17, 1985.

Rev. Rul. 85-51, 1985-1 C.B. 287, 1985-17 I.R.B. 7.