REVENUE RULE 91-24

1991-1 C.B. 188, 1991-13 I.R.B. 18.

Internal Revenue Service
Revenue Ruling

SPECIAL USE VALUE; FARMS; INTEREST RATES

Published: April 1, 1991

Section 2032A.-Valuation of Certain Farm, Etc., Real Property, 26 CFR 20.2032A- 4: Method of valuing farm real property.

Special use value; farms; interest rates. The 1991 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. [Full text in this issue.]

This revenue ruling contains a list of the average annual effective interest rates on new loans under the Farm Credit Bank system. (Prior to 1988, the Farm Credit Banks were known as Federal Land Banks. As a result of the Agriculture Credit Act of 1987, Pub. L. No. 100-233, each Federal Land Bank merged into a newly created Farm Credit Bank.) This revenue ruling also contains a list of the states within each Farm Credit Bank District.

Under section 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Farm Credit 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. The rates in this revenue ruling may be used by estates that value farmland under section 2032A as of a date in 1991.

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 (Table I). The states within each Farm Credit Bank District are set forth in the accompanying Table of Farm Credit Bank Districts (Table II).

Rev. Rul. 81-170, 1981-1 C.B. 454, contains an illustrative computation of an average effective interest rate. The rates applicable for valuation in 1990 are in Rev. Rul. 90-49, 1990-1 C.B. 171. For rate information for years prior to 1990, see Rev. Rul. 89- 58, 1989-1 C.B. 275, and other revenue rulings that are cited therein.

DRAFTING INFORMATION

The principal author of this revenue ruling is Lane Damazo of the Office of the Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling contact Lane Damazo (202) 535-9760 (not a toll-free call).

REV. RUL. 91-24 TABLE 1
TABLE OF INTEREST RATES

Farm Credit Bank District in which property is located (Year of Valuation 1991) Interest rate
Baltimore 10.68
Columbia 11.31
Louisville 11.45
Omaha 10.87
Sacramento 11.65
St. Louis 10.73
St. Paul 11.14
Spokane 11.28
Springfield 11.01
Texas 10.55
Wichita 10.83

REV. RUL. 91-24 TABLE 2
TABLE OF FARM CREDIT BANK DISTRICTS

Bank Districts States
Baltimore Delaware, District of Columbia, Maryland, Pennsylvania, Virginia, West Virginia.
Columbia Florida, Georgia, North Carolina, South Carolina.
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 Alabama, Louisiana, Mississippi, Texas.
Wichita Colorado, Kansas, New Mexico, Oklahoma.

Rev. Rul. 91-24, 1991-1 C.B. 188, 1991-13 I.R.B. 18.