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IRS Announces Applicable Federal Rates For July.

JUN. 17, 2005

Rev. Rul. 2005-38; 2005-2 C.B. 6

DATED JUN. 17, 2005
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Citations: Rev. Rul. 2005-38; 2005-2 C.B. 6

Rev. Rul. 2005-38

This revenue ruling provides various prescribed rates for federal income tax purposes for July 2005 (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 an 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 2005 for purposes of section 7872.

                       REV. RUL. 2005-38 TABLE 1

 

 

             Applicable Federal Rates (AFR) for July 2005

 

 

 Period for Compounding

 

 

              Annual Semiannual  Quarterly Monthly

 

 

 Short-term

 

 

 AFR          3.45%     3.42%     3.41%     3.40%

 

 110% AFR     3.80%     3.76%     3.74%     3.73%

 

 120% AFR     4.14%     4.10%     4.08%     4.07%

 

 130% AFR     4.50%     4.45%     4.43%     4.41%

 

 

 Mid-term

 

 

 AFR          3.86%     3.82%     3.80%     3.79%

 

 110% AFR     4.24%     4.20%     4.18%     4.16%

 

 120% AFR     4.63%     4.58%     4.55%     4.54%

 

 130% AFR     5.03%     4.97%     4.94%     4.92%

 

 150% AFR     5.81%     5.73%     5.69%     5.66%

 

 175% AFR     6.80%     6.69%     6.63%     6.60%

 

 

 Long-term

 

 

 AFR          4.35%     4.30%     4.28%     4.26%

 

 110% AFR     4.79%     4.73%     4.70%     4.68%

 

 120% AFR     5.23%     5.16%     5.13%     5.11%

 

 130% AFR     5.67%     5.59%     5.55%     5.53%

 

 

                       REV. RUL. 2005-38 TABLE 2

 

 

                      Adjusted AFR for July 2005

 

 

                     Period for Compounding

 

 

                  Annual  Semiannual Quarterly Monthly

 

 

 Short-term

 

 adjusted AFR     2.82%     2.80%     2.79%     2.78%

 

 

 Mid-term

 

 adjusted AFR     3.06%     3.04%     3.03%     3.02%

 

 

 Long-term

 

 adjusted AFR     4.09%     4.05%     4.03%     4.02%

 

 

                       REV. RUL. 2005-38 TABLE 3

 

 

                 Rates Under Section 382 for July 2005

 

 

 Adjusted federal long-term rate for the current month               4.09%

 

 

 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.)              4.37%

 

 

                       REV. RUL. 2005-38 TABLE 4

 

 

      Appropriate Percentages Under Section 42(b)(2) forJuly 2005

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                     7.95%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                     3.41%

 

 

                       REV. RUL. 2005-38 TABLE 5

 

 

 Rate Under Section 7520 for July 2005

 

 

 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                                               4.6%

 

 

                       REV. RUL. 2005-38 TABLE 6

 

 

 Rate Under Section 7520 for 2005

 

 

 Blended Annual Rate for 2005

 

 

      Section 7872(e)(2) blended annual rate for 2005               3.11%
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