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IRS Announces Applicable Federal Rates For October.

SEP. 16, 2005

Rev. Rul. 2005-66; 2005-2 C.B. 1

DATED SEP. 16, 2005
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Citations: Rev. Rul. 2005-66; 2005-2 C.B. 1

Rev. Rul. 2005-66

This revenue ruling provides various prescribed rates for federal income tax purposes for October 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. 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. 2005-66 TABLE 1

 

 

            Applicable Federal Rates (AFR) for October 2005

 

 

                     Period for Compounding

 

 

                               Annual   Semiannual  Quarterly  Monthly

 

 ______________________________________________________________________________

 

 Short-term

 

 

 AFR                            3.89%      3.85%      3.83%     3.82%

 

 110% AFR                       4.28%      4.24%      4.22%     4.20%

 

 120% AFR                       4.67%      4.62%      4.59%     4.58%

 

 130% AFR                       5.07%      5.01%      4.98%     4.96%

 

 

 Mid-term

 

 

 AFR                            4.08%      4.04%      4.02%     4.01%

 

 110% AFR                       4.49%      4.44%      4.42%     4.40%

 

 120% AFR                       4.91%      4.85%      4.82%     4.80%

 

 130% AFR                       5.32%      5.25%      5.22%     5.19%

 

 150% AFR                       6.15%      6.06%      6.01%     5.98%

 

 175% AFR                       7.19%      7.07%      7.01%     6.97%

 

 

 Long-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%

 

 

                       REV. RUL. 2005-66 TABLE 2

 

 

                     Adjusted AFR for October 2005

 

 

                     Period for Compounding

 

 

                               Annual   Semiannual  Quarterly  Monthly

 

 ______________________________________________________________________________

 

 Short-term adjusted AFR        2.83%      2.81%      2.80%     2.79%

 

 Mid-term adjusted AFR          3.27%      3.24%      3.23%     3.22%

 

 Long-term adjusted AFR         4.14%      4.10%      4.08%     4.07%

 

 

                       REV. RUL. 2005-66 TABLE 3

 

 

                    Rates Under Section 382 for October 2005

 

 

 Adjusted federal long-term rate for the current month                 4.14%

 

 

 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.)                4.24%

 

 

                       REV. RUL. 2005-66 TABLE 4

 

 

         Appropriate Percentages Under Section 42(b)(2) for October 2005

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                        7.98%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                        3.42%

 

 

                       REV. RUL. 2005-66 TABLE 5

 

 

                    Rate Under Section 7520 for October 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                                                  5.0%
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