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IRS Announces Applicable Federal Rates For May.

APR. 18, 2006

Rev. Rul. 2006-24; 2006-1 C.B. 875

DATED APR. 18, 2006
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Citations: Rev. Rul. 2006-24; 2006-1 C.B. 875

Rev. Rul. 2006-24

This revenue ruling provides various prescribed rates for federal income tax purposes for May 2006 (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. 2006-24 TABLE 1

 

 

              Applicable Federal Rates (AFR) for May 2006

 

 

                        Period for Compounding

 

                        ______________________

 

 

                          Annual     Semiannual     Quarterly     Monthly

 

                          ______     __________     _________     _______

 

                                            Short-term

 

                                            __________

 

 

 AFR                      4.85%         4.79%         4.76%        4.74%

 

 110% AFR                 5.34%         5.27%         5.24%        5.21%

 

 120% AFR                 5.83%         5.75%         5.71%        5.68%

 

 130% AFR                 6.33%         6.23%         6.18%        6.15%

 

 

                                             Mid-term

 

                                             ________

 

 AFR                      4.84%         4.78%         4.75%        4.73%

 

 110% AFR                 5.33%         5.26%         5.23%        5.20%

 

 120% AFR                 5.82%         5.74%         5.70%        5.67%

 

 130% AFR                 6.31%         6.21%         6.16%        6.13%

 

 150% AFR                 7.30%         7.17%         7.11%        7.07%

 

 175% AFR                 8.55%         8.37%         8.28%        8.23%

 

 

                                            Long-term

 

                                            _________

 

 AFR                      5.00%         4.94%         4.91%        4.89%

 

 110% AFR                 5.50%         5.43%         5.39%        5.37%

 

 120% AFR                 6.02%         5.93%         5.89%        5.86%

 

 130% AFR                 6.52%         6.42%         6.37%        6.34%

 

 

                       REV. RUL. 2006-24 TABLE 2

 

 

                       Adjusted AFR for May 2006

 

 

                        Period for Compounding

 

                        ______________________

 

 

                          Annual     Semiannual     Quarterly     Monthly

 

                          ______     __________     _________     _______

 

 Short-term

 

 adjusted AFR              3.46%        3.43%         3.42%        3.41%

 

 

 Mid-term

 

 adjusted AFR              3.66%        3.63%         3.61%        3.60%

 

 

 Long-term

 

 adjusted AFR              4.30%        4.25%         4.23%        4.21%

 

 

                       REV. RUL. 2006-24 TABLE 3

 

 

                 Rates Under Section 382 for May 2006

 

 

 Adjusted federal long-term rate for the current month             4.30%

 

 

 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.)            4.30%

 

 

                      REV. RUL. 2006-24 TABLE 4

 

 

      Appropriate Percentages Under Section 42(b)(2) for May 2006

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                    8.15%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                    3.49%

 

 

                       REV. RUL. 2006-24 TABLE 5

 

 

                 Rate Under Section 7520 for May 2006

 

 

 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                                              5.8%
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