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IRS Announces Applicable Federal Rates For January.

DEC. 22, 2009

Rev. Rul. 2010-1; 2010-2 I.R.B. 248

DATED DEC. 22, 2009
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Citations: Rev. Rul. 2010-1; 2010-2 I.R.B. 248

Part I

 

 

Section 1274. -- Determination of Issue Price in the Case of Certain

 

Debt Instruments Issued for Property

 

 

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846,

 

1288, 7520, 7872.)

 

 

This revenue ruling provides various prescribed rates for federal income tax purposes for January 2010 (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)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, and before December 31, 2013, shall not be less than 9%. 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 deemed rate of return for transfers made during calendar year 2010 to pooled income funds described in § 642(c)(5) that have been in existence for less than 3 taxable years immediately preceding the taxable year in which the transfer was made.

                       REV. RUL. 2010-1 TABLE 1

 

 

            Applicable Federal Rates (AFR) for January 2010

 

 

                               Period for Compounding

 

                     _________________________________________________

 

                     Annual    Semiannual     Quarterly        Monthly

 

                     _________________________________________________

 

 

                                        Short-term

 

 

 AFR                 .57%           .57%           .57%         .57%

 

 110% AFR            .63%           .63%           .63%         .63%

 

 120% AFR            .68%           .68%           .68%         .68%

 

 130% AFR            .74%           .74%           .74%         .74%

 

 

                                          Mid-term

 

 

 AFR                 2.45%          2.44%          2.43%       2.43%

 

 110% AFR            2.70%          2.68%          2.67%       2.67%

 

 120% AFR            2.95%          2.93%          2.92%       2.91%

 

 130% AFR            3.20%          3.17%          3.16%       3.15%

 

 150% AFR            3.69%          3.66%          3.64%       3.63%

 

 175% AFR            4.32%          4.27%          4.25%       4.23%

 

 

                                          Long-term

 

 

 AFR                 4.11%          4.07%          4.05%       4.04%

 

 110% AFR            4.53%          4.48%          4.46%       4.44%

 

 120% AFR            4.94%          4.88%          4.85%       4.83%

 

 130% AFR            5.36%          5.29%          5.26%       5.23%

 

 _____________________________________________________________________

 

 

                       REV. RUL. 2010-1 TABLE 2

 

 

                     Adjusted AFR for January 2010

 

 

                                 Period for Compounding

 

                     _________________________________________________

 

                     Annual    Semiannual     Quarterly       Monthly

 

                     _________________________________________________

 

 

 Short-term

 

 adjusted AFR        .63%           .63%         .63%         .63%

 

 

 Mid-term

 

 adjusted AFR       1.79%          1.78%        1.78%        1.77%

 

 

 Long-term

 

 adjusted AFR       4.01%          3.97%        3.95%        3.94%

 

 _____________________________________________________________________

 

 

                       REV. RUL. 2010-1 TABLE 3

 

 

               Rates Under Section 382 for January 2010

 

 

 Adjusted federal long-term rate for the current month           4.01%

 

 

 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.)          4.14%

 

 

                       REV. RUL. 2010-1 TABLE 4

 

 

    Appropriate Percentages Under Section 42(b)(1) for January 2010

 

 

 Note: Under Section 42(b)(2), the applicable percentage for

 

 non-federally subsidized new buildings placed in service

 

 after July 30, 2008, and before December 31, 2013,

 

 shall not be less than 9%.

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                  7.76%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                  3.32%

 

 

                       REV. RUL. 2010-1 TABLE 5

 

 

               Rate Under Section 7520 for January 2010

 

 

 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                         3.0%

 

 

                       REV. RUL. 2010-1 TABLE 6

 

 

         Deemed Rate for Transfers to New Pooled Income Funds

 

                              During 2010

 

 

 Deemed rate of return for transfers during 2010 to pooled

 

 income funds that have been in existence for less than

 

 3 taxable years                                                 4.6%
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