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IRS Announces Applicable Federal Rates For December.

NOV. 17, 2004

Rev. Rul. 2004-106; 2004-2 C.B. 893

DATED NOV. 17, 2004
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Citations: Rev. Rul. 2004-106; 2004-2 C.B. 893

Rev. Rul. 2004-106

This revenue ruling provides various prescribed rates for federal income tax purposes for December 2004 (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 contains the 2005 interest rate for sections 846 and 807.

                      REV. RUL. 2004-106 TABLE 1

 

 

           Applicable Federal Rates (AFR) for December 2004

 

 

                     Period for Compounding

 

 __________________________________________________

 

             Annual  Semiannual Quarterly  Monthly

 

 __________________________________________________

 

 Short-term

 

 

      AFR     2.48%     2.46%     2.45%     2.45%

 

 110% AFR     2.73%     2.71%     2.70%     2.69%

 

 120% AFR     2.97%     2.95%     2.94%     2.93%

 

 130% AFR     3.23%     3.20%     3.19%     3.18%

 

 

 Mid-term

 

 

      AFR     3.56%     3.53%     3.51%     3.50%

 

 110% AFR     3.92%     3.88%     3.86%     3.85%

 

 120% AFR     4.28%     4.24%     4.22%     4.20%

 

 130% AFR     4.64%     4.59%     4.56%     4.55%

 

 150% AFR     5.37%     5.30%     5.27%     5.24%

 

 175% AFR     6.28%     6.18%     6.13%     6.10%

 

 

 Long-term

 

 

      AFR     4.68%     4.63%     4.60%     4.59%

 

 110% AFR     5.15%     5.09%     5.06%     5.04%

 

 120% AFR     5.64%     5.56%     5.52%     5.50%

 

 130% AFR     6.11%     6.02%     5.98%     5.95%

 

 

                      REV. RUL. 2004-106  TABLE 2

 

 

                    Adjusted AFR for December 2004

 

 

                     Period for Compounding

 

 ______________________________________________________

 

                  Annual Semiannual  Quarterly Monthly

 

 ______________________________________________________

 

 Short-term

 

 adjusted AFR     1.88%     1.87%     1.87%     1.86%

 

 

 Mid-term

 

 adjusted AFR     2.84%     2.82%     2.81%     2.80%

 

 

 Long-term

 

 adjusted AFR     4.19%     4.15%     4.13%     4.11%

 

 

                      REV. RUL. 2004-106 TABLE 3

 

 

 Rates Under Section 382 for December 2004

 

 

 Adjusted federal long-term rate for the current month            4.19%

 

 

 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.)           4.27%

 

 

                      REV. RUL. 2004-106 TABLE 4

 

 

   Appropriate Percentages Under Section 42(b)(2) for December 2004

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                   7.96%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                   3.41%

 

 

                      REV. RUL. 2004-106  TABLE 5

 

 

 Rate Under Section 7520 for December 2004

 

 

 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                                         4.20%

 

 

                      REV. RUL. 2004-106 TABLE 6

 

 

 Applicable rate of interest for 2005  for purposes of section

 

 846 and 807                                                      4.44%
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