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IRS Announces Applicable Federal Rates For June.

MAY 19, 2008

Rev. Rul. 2008-28; 2008-22 I.R.B. 1029

DATED MAY 19, 2008
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Citations: Rev. Rul. 2008-28; 2008-22 I.R.B. 1029

Rev. Rul. 2008-28

 

Part I

 

 

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 June 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. 2008-28 TABLE 1

 

 

             Applicable Federal Rates (AFR) for June 2008

 

 

                        Period for Compounding

 

           Annual         Semiannual          Quarterly      Monthly

 

 

                              Short-term

 

 

 AFR       2.08%          2.07%               2.06%          2.06%

 

 110% AFR  2.29%          2.28%               2.27%          2.27%

 

 120% AFR  2.50%          2.48%               2.47%          2.47%

 

 130% AFR  2.71%          2.69%               2.68%          2.68%

 

 

                               Mid-term

 

 

 AFR       3.20%          3.17%               3.16%          3.15%

 

 110% AFR  3.52%          3.49%               3.47%          3.46%

 

 120% AFR  3.84%          3.80%               3.78%          3.77%

 

 130% AFR  4.16%          4.12%               4.10%          4.09%

 

 150% AFR  4.82%          4.76%               4.73%          4.71%

 

 175% AFR  5.63%          5.55%               5.51%          5.49%

 

 

                               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. 2008-28 TABLE 2

 

 

                      Adjusted AFR for June 2008

 

 

                        Period for Compounding

 

 

               Annual         Semiannual          Quarterly      Monthly

 

 

 Short-term

 

 adjusted AFR   1.95%          1.94%               1.94%          1.93%

 

 

 Mid-term

 

 adjusted AFR   3.07%          3.05%               3.04%          3.03%

 

 

 Long-term

 

 adjusted AFR   4.57%          4.52%               4.49%          4.48%

 

 

                       REV. RUL. 2008-28 TABLE 3

 

 

                 Rates Under Section 382 for June 2008

 

 

        Adjusted federal long-term rate for the current month     4.57%

 

 

        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.)    4.71%

 

 

                       REV. RUL. 2008-28 TABLE 4

 

 

     Appropriate Percentages Under Section 42(b)(2) for June 2008

 

 

        Appropriate percentage for the 70% present

 

        value low-income housing credit                 7.89%

 

 

        Appropriate percentage for the 30% present

 

        value low-income housing credit                 3.38%

 

 

                       REV. RUL. 2008-28 TABLE 5

 

 

                 Rate Under Section 7520 for June 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                           3.8%
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