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IRS Announces Applicable Federal Rates For October.

SEP. 19, 2006

Rev. Rul. 2006-50; 2006-2 C.B. 627

DATED SEP. 19, 2006
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Citations: Rev. Rul. 2006-50; 2006-2 C.B. 627

Rev. Rul. 2006-50

This revenue ruling provides various prescribed rates for federal income tax purposes for October 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. 2006-50 TABLE 1

 

 

            Applicable Federal Rates (AFR) for October 2006

 

 

                        Period for Compounding

 

 

                     Annual   Semiannual   Quarterly    Monthly

 

 ______________________________________________________________________________

 

 

                           Short-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%

 

 

                            Mid-term

 

 

 AFR                  4.82%        4.76%        4.73%     4.71%

 

 110% AFR             5.31%        5.24%        5.21%     5.18%

 

 120% AFR             5.79%        5.71%        5.67%     5.64%

 

 130% AFR             6.29%        6.19%        6.14%     6.11%

 

 150% AFR             7.27%        7.14%        7.08%     7.04%

 

 175% AFR             8.50%        8.33%        8.25%     8.19%

 

 

                           Long-term

 

 

 AFR                  5.02%        4.96%        4.93%     4.91%

 

 110% AFR             5.53%        5.46%        5.42%     5.40%

 

 120% AFR             6.04%        5.95%        5.91%     5.88%

 

 130% AFR             6.55%        6.45%        6.40%     6.36%

 

 

                       REV. RUL. 2006-50 TABLE 2

 

 

                     Adjusted AFR for October 2006

 

 

                        Period for Compounding

 

 

                     Annual   Semiannual   Quarterly    Monthly

 

 ______________________________________________________________________________

 

 Short-term

 

 adjusted AFR         3.50%        3.47%       3.46%      3.45%

 

 

 Mid-term

 

 adjusted AFR         3.69%        3.66%       3.64%      3.63%

 

 

 Long-term

 

 adjusted AFR         4.22%        4.18%       4.16%      4.14%

 

 

                       REV. RUL. 2006-50 TABLE 3

 

 

               Rates Under Section 382 for October 2006

 

 

 Adjusted federal long-term rate for the current month           4.22%

 

 

 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.)          4.52%

 

 

                       REV. RUL. 2006-50 TABLE 4

 

 

    Appropriate Percentages Under Section 42(b)(2) for October 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. 2006-50 TABLE 5

 

 

                    Rate Under Section 7520 for October 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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