Internal Revenue Service
Revenue Ruling
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Rev. Rul. 2000-54
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 December 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 2001 interest rate for purposes of sections 846 and 807.
REV. RUL. 2000-54 TABLE 1
Applicable Federal Rates (AFR) for December 2000
PERIOD FOR COMPOUNDING
Annual Semiannual Quarterly Monthly
______ __________ _________ _______
SHORT-TERM
AFR 6.10%
6.01%
5.97%
5.94%
110% AFR 6.72%
6.61%
6.56%
6.52%
120% AFR 7.34%
7.21%
7.15%
7.10%
130% AFR 7.96%
7.81%
7.74% 7.69%
MID-TERM
AFR 5.87%
5.79%
5.75%
5.72%
110% AFR 6.47%
6.37%
6.32%
6.29%
120% AFR 7.07%
6.95%
6.89%
6.85%
130% AFR 7.67%
7.53% 7.46%
7.41%
150% AFR 8.88%
8.69%
8.60%
8.54%
175% AFR 10.39%
10.13% 10.00%
9.92%
LONG-TERM
AFR 5.98%
5.89%
5.85%
5.82%
110% AFR
6.58%
6.48% 6.43%
6.39%
120% AFR 7.19%
7.07%
7.01%
6.97%
130% AFR 7.81%
7.66%
7.59%
7.54%
REV. RUL. 2000-54 TABLE 2
Adjusted AFR for December 2000
PERIOD FOR COMPOUNDING
Annual Semiannual Quarterly
Monthly
______ __________ _________
_______
Short-term
adjusted AFR
4.30% 4.25%
4.23%
4.21%
Mid-term
adjusted AFR
4.58% 4.53%
4.50%
4.49%
Long-term
adjusted AFR
5.31% 5.24%
5.21%
5.18%
REV. RUL. 2000-54 TABLE 3
Rates Under
Section 382 for December 2000
Adjusted federal
long-term rate for the current month
5.31%
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.)
5.39%
REV. RUL. 2000-54 TABLE 4
Appropriate Percentages Under Section 42(b)(2)
for December 2000
Appropriate
percentage for the 70% present
value low-income
housing credit
8.39%
Appropriate
percentage for the 30% present
value low-income
housing credit
3.59%
REV. RUL. 2000-54 TABLE 5
Rate Under Section 7520 for December 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
7.0%
REV. RUL.
2000-54 TABLE 6
Rate Under Sections 846 and 807
Applicable rate
of interest for 2001 for purposes
of sections 846
and 807
6.00%