For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-9 indicates the applicable federal rate under section 7520 for February 2008 is 4.2%; down 0.2% from the January rate of 4.4% and down 0.8% from the December rate of 5.0%.
Rev. Rul. 2008-9; 2008-5 IRB 1
Full Text:
Jan. 17, 2008
This revenue ruling provides various prescribed rates for federal income tax purposes for February 2008 (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. 2008-9 TABLE 1
Applicable Federal Rates (AFR) for February 2008
Period for Compounding
______________________
Annual Semiannual Quarterly Monthly
______ __________ _________ _______
Short-term
__________
AFR 3.11% 3.09% 3.08% 3.07% 110% AFR 3.43% 3.40% 3.39% 3.38% 120% AFR 3.74% 3.71% 3.69% 3.68% 130% AFR 4.06% 4.02% 4.00% 3.99%
Mid-term
________
AFR 3.51% 3.48% 3.46% 3.46% 110% AFR 3.87% 3.83% 3.81% 3.80% 120% AFR 4.22% 4.18% 4.16% 4.14% 130% AFR 4.57% 4.52% 4.49% 4.48% 150% AFR 5.29% 5.22% 5.19% 5.16% 175% AFR 6.18% 6.09% 6.04% 6.01%
Long-term
_________
AFR 4.46% 4.41% 4.39% 4.37% 110% AFR 4.91% 4.85% 4.82% 4.80% 120% AFR 5.36% 5.29% 5.26% 5.23% 130% AFR 5.81% 5.73% 5.69% 5.66%
REV. RUL. 2008-9 TABLE 2
Adjusted AFR for February 2008
Period for Compounding
______________________
Annual Semiannual Quarterly Monthly
______ __________ _________ _______
Short-term adjusted AFR 2.84% 2.82% 2.81% 2.80%
Mid-term adjusted AFR 3.36% 3.33% 3.32% 3.31%
Long-term adjusted AFR 4.23% 4.19% 4.17% 4.15%
REV. RUL. 2008-9 TABLE 3
Rates Under Section 382 for February 2008
Adjusted federal long-term rate for the current month 4.23%
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.) 4.34%
REV. RUL. 2008-9 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for February 2008
Appropriate percentage for the 70% present value low-income housing credit 7.92%
Appropriate percentage for the 30% present value low-income housing credit 3.40%
REV. RUL. 2008-9 TABLE 5
Rate Under Section 7520 for February 2008
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 4.2%