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IRS Announces Applicable Federal Rates For July.

JUN. 19, 2003

Rev. Rul. 2003-71; 2003-2 C.B. 1

DATED JUN. 19, 2003
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Citations: Rev. Rul. 2003-71; 2003-2 C.B. 1

Rev. Rul. 2003-71

[1] This revenue ruling provides various prescribed rates for federal income tax purposes for July 2003 (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 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 the blended annual rate for 2003 for purposes of section 7872.

                       REV. RUL. 2003-71 TABLE 1

 

 

              Applicable Federal Rates (AFR) for July 2003

 

 

                     Period for Compounding

 

 

                     Annual     Semiannual   Quarterly

 

  Monthly

 

 

 Short-Term

 

 

          AFR        1.23%        1.23%       1.23%       1.23%

 

     110% AFR        1.35%        1.35%       1.35%       1.35%

 

     120% AFR        1.49%        1.48%       1.48%       1.48%

 

     130% AFR        1.61%        1.60%       1.60%       1.59%

 

 

    Mid-Term

 

 

          AFR        2.55%        2.53%       2.52%       2.52%

 

     110% AFR        2.80%        2.78%       2.77%       2.76%

 

     120% AFR        3.06%        3.04%       3.03%       3.02%

 

     130% AFR        3.32%        3.29%       3.28%       3.27%

 

     150% AFR        3.84%        3.80%       3.78%       3.77%

 

     175% AFR        4.48%        4.43%       4.41%       4.39%

 

 

    Long-Term

 

 

          AFR        4.17%        4.13%       4.11%       4.09%

 

     110% AFR        4.59%        4.54%       4.51%       4.50%

 

     120% AFR        5.02%        4.96%       4.93%       4.91%

 

     130% AFR        5.44%        5.37%       5.33%       5.31%

 

 

                     REV. RUL. 2003-71 TABLE 2

 

 

                    Adjusted AFR for July 2003

 

 

                    Period for Compounding

 

 

                    Annual   Semiannual   Quarterly

 

   Monthly

 

 

     Short-term

 

 

     adjusted AFR    1.09%    1.09%        1.09%        1.09%

 

 

     Mid-term

 

     adjusted AFR    2.29%    2.28%        2.27%        2.27%

 

 

     Long-term

 

     adjusted AFR    4.05%    4.01%        3.99%        3.98%

 

 

                     REV. RUL. 2003-71 TABLE 3

 

 

           Rates Under Section 382 for July 2003

 

      Adjusted federal long-term rate for the current month    4.05%

 

 

      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.)                                       4.45%

 

 

                     REV. RUL. 2003-71 TABLE 4

 

 

           Appropriate Percentages Under Section 42(b)(2)

 

                         for July 2003

 

 

       Appropriate percentage for the 70% present

 

       value low-income housing credit                      7.78%

 

 

       Appropriate percentage for the 30% present

 

       value low-income housing credit                      3.33%

 

 

                    REV. RUL. 2003-71 TABLE 5

 

 

               Rate Under Section 7520 for July 2003

 

 

       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     3.0%

 

 

                            REV. RUL. 2003-71

 

 

                       Blended Annual Rate for 2003

 

 

        Section 7872(e)(2) blended annual rate for 2003     1.52%
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