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SERVICE RELEASES APPLICABLE FEDERAL RATES FOR MAY.

APR. 20, 1989

Rev. Rul. 89-65; 1989-1 C.B. 265

DATED APR. 20, 1989
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Citations: Rev. Rul. 89-65; 1989-1 C.B. 265

Rev. Rul. 89-65

This revenue ruling provides various prescribed rates for federal income tax purposes for May 1989 (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 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Finally, 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.

                        REV. RUL. 89-65 TABLE 1

 

 

              APPLICABLE FEDERAL RATES (AFR) FOR MAY 1989

 

 

                              Period for Compounding

 

                              ______________________

 

                  Annual      Semiannual    Quarterly      Monthly

 

                  ______      __________    _________      _______

 

 Short-Term

 

 _________

 

      AFR          9.82%         9.59%         9.48%         9.40%

 

 110% AFR         10.83%        10.55%        10.41%        10.33%

 

 120% AFR         11.84%        11.51%        11.35%        11.24%

 

 

 Mid-Term

 

 _________

 

      AFR          9.69%         9.47%         9.36%         9.29%

 

 110% AFR         10.69%        10.42%        10.29%        10.20%

 

 120% AFR         11.68%        11.36%        11.20%        11.10%

 

 

 Long-Term

 

 _________

 

      AFR           9.43%         9.22%         9.12%         9.05%

 

 110% AFR          10.40%        10.14%        10.01%         9.93%

 

 120% AFR          11.37%        11.06%        10.91%        10.81%

 

 

                        REV. RUL. 89-65 TABLE 2

 

 

                       ADJUSTED AFR FOR MAY 1989

 

 

                              Period for Compounding

 

                              ______________________

 

                  Annual      Semiannual    Quarterly      Monthly

 

                  ______      __________    _________      _______

 

 Short-Term

 

 adjusted AFR      6.61%         6.50%        6.45%         6.41%

 

 

 Mid-Term

 

 adjusted AFR      6.93%         6.81%        6.75%         6.72%

 

 

 Long-Term

 

 adjusted AFR      7.39%         7.26%        7.20%         7.15%

 

 

                        REV. RUL. 89-65 TABLE 3

 

 

                 RATES UNDER SECTION 382 FOR MAY 1989

 

 

 Adjusted federal long-term rate for the current month      7.39%

 

 

 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).                                                   7.39%

 

 

                        REV. RUL. 89-65 TABLE 4

 

 

      APPROPRIATE PERCENTAGES UNDER SECTION 42(b)(2) FOR MAY 1989

 

 

 Appropriate percentage for the 70% present value

 

 low-income housing credit                                   9.27%

 

 

 Appropriate percentage for the 30% present value

 

 low-income housing credit                                   3.97%
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