Internal Revenue Service
Revenue Ruling
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Part I
Section 1274. – Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.)
This revenue ruling provides various prescribed rates for federal income tax purposes for May 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. Finally, 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.
REV. RUL. 2000-23 TABLE 1
Applicable Federal Rates (AFR) for May 2000
PERIOD FOR COMPOUNDING
Annual Semiannual Quarterly Monthly
______ __________ _________ _______
Short-Term
__________
AFR 6.42% 6.32% 6.27% 6.24%
110% AFR 7.07% 6.95% 6.89% 6.85%
120% AFR 7.72% 7.58% 7.51% 7.46%
130% AFR 8.39% 8.22% 8.14% 8.08%
Mid-Term
________
AFR 6.40% 6.30% 6.25% 6.22%
110% AFR 7.05% 6.93% 6.87% 6.83%
120% AFR 7.70% 7.56% 7.49% 7.44%
130% AFR 8.36% 8.19% 8.11% 8.05%
150% AFR 9.67% 9.45% 9.34% 9.27%
175% AFR 11.33% 11.03% 10.88% 10.78%
Long-Term
_________
AFR 6.20% 6.11% 6.06% 6.03%
110% AFR 6.83% 6.72% 6.66% 6.63%
120% AFR 7.46% 7.33% 7.26% 7.22%
130% AFR 8.10% 7.94% 7.86% 7.81%
REV. RUL. 2000-23 TABLE 2
Adjusted AFR for May 2000
PERIOD FOR COMPOUNDING
Annual Semiannual Quarterly Monthly
______ __________ _________ _______
Short-term
adjusted AFR 4.34% 4.29% 4.27% 4.25%
Mid-term
adjusted AFR 4.91% 4.85% 4.82% 4.80%
Long-term
adjusted AFR 5.57% 5.49% 5.45% 5.43%
REV. RUL. 2000-23 TABLE 3
Rates Under Section 382 for May 2000
Adjusted federal long-term rate for the current month 5.57%
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.) 5.84%
REV. RUL. 2000-23 TABLE 4
Appropriate Percentages Under Section 42(b)(2)
for May 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 3.63%
REV. RUL. 2000-23 TABLE 5
Rate Under Section 7520 for May 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 7.8%