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IRS Announces Applicable Federal Rates For February.

JAN. 19, 2006

Rev. Rul. 2006-7; 2006-1 C.B. 399

DATED JAN. 19, 2006
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Citations: Rev. Rul. 2006-7; 2006-1 C.B. 399

Rev. Rul. 2006-7

This revenue ruling provides various prescribed rates for federal income tax purposes for February 2006 (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. 2006-7 TABLE 1

 

 

           Applicable Federal Rates (AFR) for February 2006

 

 

                                    Period for Compounding

 

                                    ______________________

 

                        Annual     Semiannual      Quarterly     Monthly

 

                        ______     __________      _________     _______

 

                                           Short-term

 

                                           __________

 

 

 AFR                    4.39%         4.34%           4.32%       4.30%

 

 110% AFR               4.83%         4.77%           4.74%       4.72%

 

 120% AFR               5.28%         5.21%           5.18%       5.15%

 

 130% AFR               5.72%         5.64%           5.60%       5.57%

 

 

                                             Mid-term

 

                                             ________

 

 AFR                    4.40%         4.35%           4.33%       4.31%

 

 110% AFR               4.85%         4.79%           4.76%       4.74%

 

 120% AFR               5.29%         5.22%           5.19%       5.16%

 

 130% AFR               5.74%         5.66%           5.62%       5.59%

 

 150% AFR               6.64%         6.53%           6.48%       6.44%

 

 175% AFR               7.75%         7.61%           7.54%       7.49%

 

 

                                            Long-term

 

                                            _________

 

 AFR                    4.61%         4.56%           4.53%       4.52%

 

 110% AFR               5.08%         5.02%           4.99%       4.97%

 

 120% AFR               5.54%         5.47%           5.43%       5.41%

 

 130% AFR               6.02%         5.93%           5.89%       5.86%

 

 

                       REV. RUL. 2006-7 TABLE 2

 

 

                    Adjusted AFR for February 2006

 

 

                                     Period for Compounding

 

                                     ______________________

 

                        Annual      Semiannual      Quarterly    Monthly

 

                        ______      __________      _________    _______

 

 Short-term

 

 adjusted AFR           3.20%          3.17%          3.16%       3.15%

 

 

 Mid-term

 

 adjusted AFR           3.53%          3.50%          3.48%       3.47%

 

 

 Long-term

 

 adjusted AFR           4.26%          4.22%          4.20%       4.18%

 

 

                       REV. RUL. 2006-7 TABLE 3

 

 

               Rates Under Section 382 for February 2006

 

 

 Adjusted federal long-term rate for the current month            4.26%

 

 

 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.)           4.40%

 

 

                       REV. RUL. 2006-7  TABLE 4

 

 

   Appropriate Percentages Under Section 42(b)(2) for February 2006

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                   8.05%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                   3.45%

 

 

                       REV. RUL. 2006-7 TABLE 5

 

 

               Rate Under Section 7520 for February 2006

 

 

 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                                          5.2%
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