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IRS Announces Applicable Federal Rates For February.

JAN. 19, 2005

Rev. Rul. 2005-8; 2005-1 C.B. 466

DATED JAN. 19, 2005
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Citations: Rev. Rul. 2005-8; 2005-1 C.B. 466

Rev. Rul. 2005-8

This revenue ruling provides various prescribed rates for federal income tax purposes for February 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. 2005-8 TABLE 1

 

 

           Applicable Federal Rates (AFR) for February 2005

 

 

                        Period for Compounding

 

             Annual     Semiannual Quarterly Monthly

 

 

                              Short-term

 

 

 AFR          2.92%     2.90%     2.89%     2.88%

 

 110% AFR     3.22%     3.19%     3.18%     3.17%

 

 120% AFR     3.51%     3.48%     3.46%     3.46%

 

 130% AFR     3.81%     3.77%     3.75%     3.74%

 

 

                               Mid-term

 

 

 AFR          3.83%     3.79%     3.77%     3.76%

 

 110% AFR     4.21%     4.17%     4.15%     4.13%

 

 120% AFR     4.60%     4.55%     4.52%     4.51%

 

 130% AFR     4.99%     4.93%     4.90%     4.88%

 

 150% AFR     5.77%     5.69%     5.65%     5.62%

 

 175% AFR     6.74%     6.63%     6.58%     6.54%

 

 

                               Long-term

 

 

 AFR          4.72%     4.67%     4.64%     4.63%

 

 110% AFR     5.21%     5.14%     5.11%     5.09%

 

 120% AFR     5.68%     5.60%     5.56%     5.54%

 

 130% AFR     6.16%     6.07%     6.02%     5.99%

 

 

                       REV. RUL. 2005-8  TABLE 2

 

 

                    Adjusted AFR for February 2005

 

 

                        Period for Compounding

 

                Annual     Semiannual Quarterly Monthly

 

 Short-term

 

 

 adjusted AFR     2.11%     2.10%     2.09%     2.09%

 

 

 Mid-term

 

 adjusted AFR     2.89%     2.87%     2.86%     2.85%

 

 

 Long-term

 

 adjusted AFR     4.20%     4.16%     4.14%     4.12%

 

 

                       REV. RUL. 2005-8 TABLE 3

 

 

               Rates Under Section 382 for February 2005

 

 

 Adjusted federal long-term rate for the current month            4.20%

 

 

 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.)           4.27%

 

 

                       REV. RUL. 2005-8 TABLE 4

 

 

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

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                   7.99%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                   3.43%

 

 

                       REV. RUL. 2005-8  TABLE 5

 

 

               Rate Under Section 7520 for February 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                              4.60%
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