Internal Revenue Service
Revenue Ruling

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Rev. Rul. 2000-1, 2000-2 IRB, IRC Sec(s). 1274

Applicable federal rates tables.

Headnote:

Tables provided that set forth various applicable federal rates for January, 2000.

Code Sec. 1274;

Full Text:

This revenue ruling provides various prescribed rates for federal income tax purposes for January 2000 (the current month.) Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short- term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long- term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in service during the current month. Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520. Finally, Table 6 contains the deemed rate of return for transfers made during calendar year 2000 to pooled income funds described in section 642(c)(5) that have been in existence for less than 3 taxable years immediately preceding the taxable year in which the transfer is made.

                           REV. RUL. 2000-1  TABLE 1
                Applicable Federal Rates (AFR) for January 2000
                                      Period for Compounding
                           -------------------------------------------
                           Annual     Semiannual   Quarterly   Monthly
                           ------     ----------   ---------   -------
       Short-Term
       ----------
             AFR           5.88%        5.80%        5.76%      5.73%
        110% AFR           6.48%        6.38%        6.33%      6.30%
        120% AFR           7.08%        6.96%        6.90%      6.86%
        130% AFR           7.68%        7.54%        7.47%      7.42%
       Mid-Term
       --------
             AFR           6.21%        6.12%        6.07%      6.04%
        110% AFR           6.84%        6.73%        6.67%      6.64%
        120% AFR           7.47%        7.34%        7.27%      7.23%
        130% AFR           8.12%        7.96%        7.88%      7.83%
        150% AFR           9.39%        9.18%        9.08%      9.01%
        175% AFR          11.00%       10.71%       10.57%     10.48%
       Long-Term
       ---------
             AFR           6.45%        6.35%        6.30%      6.27%
        110% AFR           7.11%        6.99%        6.93%      6.89%
        120% AFR           7.77%        7.62%        7.55%      7.50%
        130% AFR           8.43%        8.26%        8.18%      8.12%
                           REV. RUL. 2000-1 TABLE 2
                        Adjusted AFR for January 2000
                                      Period for Compounding
                           -------------------------------------------
                           Annual     Semiannual   Quarterly   Monthly
                           ------     ----------   ---------   -------
       Short-term
       adjusted AFR        4.01%        3.97%        3.95%      3.94%
       Mid-term
       adjusted AFR        4.66%        4.61%        4.58%      4.57%
       Long-term
       adjusted AFR        5.59%        5.51%        5.47%      5.45%
                           REV. RUL. 2000-1 TABLE 3
                   Rates Under Section 382 for January 2000
       Adjusted federal long-term rate for the current month    5.59%
       Long-term tax-exempt rate for ownership changes
       during the current month (the highest of the adjusted
       federal long-term rates for the current month and the
       prior two months.)                                       5.72%
                           REV. RUL. 2000-1 TABLE 4
                Appropriate Percentages Under Section 42(b)(2)
                              for January 2000
       Appropriate percentage for the 70% present
       value low-income housing credit                          8.48%
       Appropriate percentage for the 30% present
       value low-income housing credit                          3.64%
                           REV. RUL. 2000-1 TABLE 5
                  Rate Under Section 7520 for January 2000
       Applicable federal rate for determining the present
       value of an annuity, an interest for life or a term
       of years, or a remainder or reversionary interest        7.4%
                           REV. RUL. 2000-1 TABLE 6
       Deemed Rate for Transfers to New Pooled Income Funds During 2000
       Deemed rate of return for transfers during 2000 to
       pooled income funds that have been in existence for
       less than 3 taxable years                                6.80%