Rev. Rul. 88-59
1988-2 C.B. 332, 1988-28 I.R.B. 22.
Internal Revenue Service
Revenue Ruling
SPECIAL USE VALUE; FARMS; INTEREST RATES
Published: July 11, 1988
26 CFR 20.2032A-4: Method of valuing farm real property
Special use value; farms; interest rates. The 1988 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.
This revenue ruling contains a list of the average annual effective interest rates on new Federal Land Bank loans. Under section 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Federal Land Bank loans are used 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. The rates in this revenue ruling may be used by estates that value farmland under section 2032A as a date in 1988.
Average annual effective interest rates, calculated in accordance with section 2032A(e)(7)(A) of the Code and section 20.2032A-4(e) of the Estate Tax Regulations, to be used under section 2032A(e)(7)(A)(ii) are set forth in the accompanying Table of Interest Rates. The states within each land bank district are set forth in the accompanying Table of Federal Land Bank Districts.
Rev. Rul. 81-170, 1981-1 C.B. 454, which sets forth rates for several prior years, contains an illustrative computation of an average annual effective interest rate. The rates applicable for valuation in years subsequent to 1981 are listed in Rev. Rul. 82-104, 1982-1 C.B. 129 (for 1982); Rev. Rul. 83-71, 1983-1 C.B. 227 (for 1983); Rev. Rul. 84-119, 1984-2 C.B. 193 (for 1984); Rev. Rul. 85-92, 1985-2 C.B. 198 (for 1985); Rev. Rul. 86-85, 1986-1 C.B. 299 (for 1986); and Rev. Rul. 87-142, 1987-52 I.R.B. 17 (for 1987).
DRAFTING INFORMATION
The principal author of this revenue ruling is Lane Damazo of the Individual Tax Division. For further information regarding this revenue ruling contact Lane Damazo on (202) 566-8994 (not a toll-free call).
TABLE OF INTEREST RATES
(Year of Valuation 1988)
Federal Land Bank District in which proper is located
______________________________________________________
Baltimore 11.94
Columbia 11.99
Jackson 11.95
Louisville 12.66
Omaha 12.56
Sacramento 12.19
St. Louis 11.91
St. Paul 12.15
Spokane 12.14
Springfield 11.94
Texas 11.50
Wichita 12.14
TABLE OF FEDERAL LAND BANK DISTRICTS
District States
________ ______
Baltimore Delaware, District of Columbia,
Maryland, Pennsylvania, Virginia,
West Virginia.
Columbia Florida, Georgia, North Carolina,
South Carolina.
Jackson Alabama, Louisiana, Mississippi.
Louisville Indiana, Kentucky, Ohio,
Tennessee.
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.
Texas Texas.
Wichita Colorado, Kansas, New Mexico,
Oklahoma.
Rev. Rul. 88-59, 1988-2 C.B. 332, 1988-28 I.R.B. 22.