Internal Revenue Service
Revenue Ruling

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Rev. Rul. 2002-25

Internal Revenue Service (I.R.S.)

Revenue Ruling

Released: April 17, 2002

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 2002 (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. 2002-25 TABLE 1              
                                                    
    Applicable Federal Rates (AFR) for May 2002    
                                                    
              Period for Compounding                
              ______________________                
                                                    
           Annual   Semiannual  Quarterly  Monthly  
           ______   __________  _________  _______  
                                                    
Short-Term                                          
__________                                          
                                                    
     AFR   3.21%      3.18%       3.17%     3.16%  
110% AFR   3.53%      3.50%       3.48%     3.47%  
120% AFR   3.86%      3.82%       3.80%     3.79%  
130% AFR   4.17%      4.13%       4.11%     4.09%  
                                                    
Mid-Term                                            
________                                            
                                                    
     AFR   4.99%      4.93%       4.90%     4.88%  
110% AFR   5.49%      5.42%       5.38%     5.36%  
120% AFR   6.01%      5.92%       5.88%     5.85%  
130% AFR   6.51%      6.41%       6.36%     6.33%  
150% AFR   7.54%      7.40%       7.33%     7.29%  
175% AFR   8.82%      8.63%       8.54%     8.48%  
                                                    
Long-Term                                          
__________                                          
                                                    
     AFR   5.85%      5.77%       5.73%     5.70%  
110% AFR   6.45%      6.35%       6.30%     6.27%  
120% AFR   7.04%      6.92%       6.86%     6.82%  
130% AFR   7.64%      7.50%       7.43%     7.39%  
  
  
                   REV. RUL. 2002-25 TABLE 2                    
                                                                
                   Adjusted AFR for May 2002                    
                                                                
                     Period for Compounding                      
                     ______________________                      
                                                                
                         Annual  Semiannual  Quarterly  Mon thly
                         ______  __________  _________  _______  
                                                                
Short-term adjusted AFR  2.56%   2.54%       2.53%      2.53%    
                                                                
Mid-term adjusted AFR    3.98%   3.94%       3.92%      3.91%    
                                                                
Long-term adjusted AFR   5.01%   4.95%       4.92%      4.90%    
  
  
                           REV. RUL. 2002-25 TABLE 3                            
                                                                                
Rates Under Section 382 for May 2002 Adjusted federal long-term rate for  5.01%
  the current month                                                            
                                                                                
Long-term tax-exempt rate for ownership changes during the current month  5.01%
  (the highest of the adjusted federal long-term rates for the current          
  month and the prior two months.)                                              
  
  
                           REV. RUL. 2002-25 TABLE 4                            
                                                                                
          Appropriate Percentages Under Section 42(b)(2) for May 2002          
                                                                                
Appropriate percentage for the 70% present value low-income housing       8.27%
  credit                                                                        
                                                                                
Appropriate percentage for the 30% present value low-income housing       3.54%
  credit                                                                        
  
  
                           REV. RUL. 2002-25 TABLE 5                            
                                                                                
                     Rate Under Section 7520 for May 2002                      
                                                                                
Applicable federal rate for determining the present value of an annuity,   6.0%
  an interest for life or a term of years, or a remainder or reversionary      
  interest                                                                      
  
Rev. Rul. 2002-25