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IRS ANNOUNCES APPLICABLE FEDERAL RATES FOR NOVEMBER.

OCT. 21, 1997

Rev. Rul. 97-44; 1997-2 C.B. 104

DATED OCT. 21, 1997
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Citations: Rev. Rul. 97-44; 1997-2 C.B. 104

Rev. Rul. 97-44

[1] This revenue ruling provides various prescribed rates for federal income tax purposes for November 1997 (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. 97-44 TABLE 1

 

 

           Applicable Federal Rates (AFR) for November 1997

 

 _____________________________________________________________________

 

                                 Period for Compounding

 

                     ___________________________________________

 

                     Annual     Semiannual   Quarterly   Monthly

 

 _____________________________________________________________________

 

 

    Short-Term

 

    __________

 

 

          AFR        5.69%        5.61%       5.57%       5.55%

 

     110% AFR        6.27%        6.17%       6.12%       6.09%

 

     120% AFR        6.84%        6.73%       6.67%       6.64%

 

     130% AFR        7.42%        7.29%       7.22%       7.18%

 

 

    Mid-Term

 

    ________

 

 

          AFR        6.10%        6.01%       5.97%       5.94%

 

     110% AFR        6.72%        6.61%       6.56%       6.52%

 

     120% AFR        7.34%        7.21%       7.15%       7.10%

 

     130% AFR        7.96%        7.81%       7.74%       7.69%

 

     150% AFR        9.22%        9.02%       8.92%       8.86%

 

     175% AFR       10.80%       10.52%      10.39%      10.30%

 

 

    Long-Term

 

    _________

 

 

          AFR        6.42%        6.32%       6.27%       6.24%

 

     110% AFR        7.07%        6.95%       6.89%       6.85%

 

     120% AFR        7.72%        7.58%       7.51%       7.46%

 

     130% AFR        8.39%        8.22%       8.14%       8.08%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 97-44 TABLE 2

 

 

                    Adjusted AFR for November 1997

 

 

                                 Period for Compounding

 

                     ___________________________________________

 

                     Annual     Semiannual   Quarterly   Monthly

 

 _____________________________________________________________________

 

 

     Short-term

 

     adjusted AFR     3.92%       3.88%        3.86%       3.85%

 

 

     Mid-term

 

     adjusted AFR     4.35%       4.30%        4.28%       4.26%

 

 

     Long-term

 

     adjusted AFR     5.15%       5.09%        5.06%       5.04%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 97-44 TABLE 3

 

 

               Rates Under Section 382 for November 1997

 

 

      Adjusted federal long-term rate for the current month    5.15%

 

 

      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.)                                       5.27%

 

 _____________________________________________________________________

 

 

                     REV. RUL. 97-44 TABLE 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for November 1997

 

 

      Appropriate percentage for the 70% present

 

      value low-income housing credit                          8.47%

 

 

      Appropriate percentage for the 30% present

 

      value low-income housing credit                          3.63%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 97-44 TABLE 5

 

 

               Rate Under Section 7520 for November 1997

 

 

      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       7.4%

 

 _____________________________________________________________________
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