Internal Revenue Service
Revenue Ruling

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Rev. Rul. 2002-74

Internal Revenue Service (I.R.S.)

Revenue Ruling

Released: October 18, 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 November 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 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. 2002-74 TABLE 1                  
     Applicable Federal Rates (AFR) for November 2002      
             Period for Compounding                        
              Annual       Annual     Quarterly  Quarterly
Short-Term                                                
       AFR     1.82%        1.81%       1.81%      1.80%  
  110% AFR     2.00%        1.99%       1.99%      1.98%  
  120% AFR     2.18%        2.17%       2.16%      2.16%  
  130% AFR     2.36%        2.35%       2.34%      2.34%  
Short-Term                                                
       AFR     3.06%        3.04%       3.03%      3.02%  
  110% AFR     3.37%        3.34%       3.33%      3.32%  
  120% AFR     3.68%        3.65%       3.63%      3.62%  
  130% AFR     3.99%        3.95%       3.93%      3.92%  
  150% AFR     4.61%        4.56%       4.53%      4.52%  
  175% AFR     5.39%        5.32%       5.29%      5.26%  
Long-Term                                                  
       AFR     4.60%        4.55%       4.52%      4.51%  
  110% AFR     5.07%        5.01%       4.98%      4.96%  
  120% AFR     5.53%        5.46%       5.42%      5.40%  
  130% AFR     6.01%        5.92%       5.88%      5.85%  
  
  
                REV. RUL. 2002-74 TABLE 2                  
              Adjusted AFR for November 2002              
               period for compounding                      
               ______________________                      
                Annual     Semiannual   Quarterly  Monthly
                ______     __________   _________  _______
Short-term                                                
Adjusted AFR     1.64%        1.63%       1.63%     1.62%  
Mid-term                                                  
adjusted AFR     2.82%        2.80%       2.79%     2.78%  
Long-term                                                  
adjusted AFR     4.31%        4.26%       4.24%     4.22%  
  
  
                           REV. RUL. 2002-74 TABLE 3                            
Rates Under Section 382 for November 2002 Adjusted federal long-term      4.31%
  rate for the current month                                                    
Long-term tax-exempt rate for ownership changes during the current month  4.63%
  (the highest of the adjusted federal long-term rates for the current          
  month and the prior two months.)                                              
  
  
                           REV. RUL. 2002-74 TABLE 4                            
       Appropriate Percentages Under Section 42(b)(2) for November 2002        
Appropriate percentage for the 70% present value low-income housing       7.89%
  credit                                                                        
Appropriate percentage for the 30% present value low-income housing       3.38%
  credit                                                                        
  
  
                           REV. RUL. 2002-74 TABLE 5                            
                   Rate Under Section 7520 for November 2002                    
Applicable federal rate for determining the present value of an annuity,   3.6%
  an interest for life or a term of years, or a remainder or reversionary      
  interest                                                                      

Rev. Rul. 2002-74