Rev. Rul. 85-91

1985-2 C.B. 187, 1985-26 I.R.B. 4.

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

Published: July 1, 1985

SECTION 1274-DETERMINATION OF ISSUE PRICE IN THE CASE OF CERTAIN DEBT INSTRUMENTS ISSUED FOR PROPERTY, 26 CFR 1.1274-6T: Alternate Method for Determining Applicable Federal Rate

(Also Sections 467, 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, tables set forth the applicable federal short-term, mid-term, and long-term rates for July 1985 under an alternate method provided by section 1.1274-6T of the Temporary Income Tax Regulations.

  Pursuant to section 1.1274-6T of the Temporary Income Tax Regulations, the short-term, mid-term, and long-term applicable federal rates (AFR) for the month of July 1985 computed under the alternate method are as follows:

              Period for Compounding
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   8.69%       8.51%      8.42%    8.36%
  110% AFR   9.58%       9.36%      9.25%    9.18%
  120% AFR  10.47%      10.21%     10.08%   10.00%
  Mid-Term
       AFR  10.23%       9.98%      9.86%    9.78%
  110% AFR  11.28%      10.98%     10.83%   10.74%
  120% AFR  12.34%      11.98%     11.81%   11.69%
Long-Term
       AFR  10.90%      10.62%     10.48%   10.39%
  110% AFR  12.02%      11.68%     11.51%   11.41%
  120% AFR  13.15%      12.74%     12.54%   12.41%