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IRS Announces Applicable Federal Rates For March.

FEB. 20, 2003

Rev. Rul. 2003-26; 2003-1 C.B. 563

DATED FEB. 20, 2003
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Citations: Rev. Rul. 2003-26; 2003-1 C.B. 563

Rev. Rul. 2003-26

[1] This revenue ruling provides various prescribed rates for federal income tax purposes for March 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. Finally, 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.

                       REV. RUL. 2003-26 TABLE 1

 

 

             Applicable Federal Rates (AFR) for March 2003

 

 

                     Period for Compounding

 

 

                    Annual     Semiannual    Quarterly     Monthly

 

                    ______     __________    _________     _______

 

 

     Short-Term

 

 

          AFR        1.58%        1.57%         1.57%       1.56%

 

     110% AFR        1.74%        1.73%         1.73%       1.72%

 

 

     120% AFR        1.89%        1.88%         1.88%       1.87%

 

     130% AFR        2.05%        2.04%         2.03%       2.03%

 

 

     Mid-Term

 

 

          AFR        3.24%        3.21%         3.20%       3.19%

 

     110% AFR        3.56%        3.53%         3.51%       3.50%

 

     120% AFR        3.89%        3.85%         3.83%       3.82%

 

     130% AFR        4.21%        4.17%         4.15%       4.13%

 

     150% AFR        4.88%        4.82%         4.79%       4.77%

 

     175% AFR        5.70%        5.62%         5.58%       5.56%

 

 

     Long-Term

 

 

          AFR        4.80%        4.74%         4.71%       4.69%

 

     110% AFR        5.28%        5.21%         5.18%       5.15%

 

     120% AFR        5.77%        5.69%         5.65%       5.62%

 

     130% AFR        6.25%        6.16%         6.11%       6.08%

 

 

                       REV. RUL. 2003-26 TABLE 2

 

 

                      Adjusted AFR for March 2003

 

 

                     Period for Compounding

 

 

                    Annual     Semiannual    Quarterly     Monthly

 

                    ______     __________    _________     _______

 

 

     Short-term

 

     adjusted AFR    1.34%        1.34%        1.34%         1.34%

 

 

     Mid-term

 

     adjusted AFR    2.76%        2.74%        2.73%         2.72%

 

 

     Long-term

 

     adjusted AFR    4.58%        4.53%        4.50%         4.49%

 

 

                       REV. RUL. 2003-26 TABLE 3

 

 

                Rates Under Section 382 for March 2003

 

     Adjusted federal long-term rate for the current month   4.58%

 

 

     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.)                                      4.61%

 

 

                       REV. RUL. 2003-26 TABLE 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                            for March 2003

 

 

     Appropriate percentage for the 70% present

 

     value low-income housing credit                         7.93%

 

 

     Appropriate percentage for the 30% present

 

     value low-income housing credit                         3.40%

 

 

                       REV. RUL. 2003-26 TABLE 5

 

 

                Rate Under Section 7520 for March 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        3.8%
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