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IRS ANNOUNCES APPLICABLE FEDERAL RATES FOR FEBRUARY.

JAN. 21, 1997

Rev. Rul. 97-7; 1997-1 C.B. 161

DATED JAN. 21, 1997
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Citations: Rev. Rul. 97-7; 1997-1 C.B. 161

Rev. Rul. 97-7

This revenue ruling provides various prescribed rates for federal income tax purposes for February 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. 97-7  TABLE 1

 

 

           Applicable Federal Rates (AFR) for February 1997

 

 

 _____________________________________________________________________

 

                                Period for Compounding

 

                     ___________________________________________

 

 

                     Annual     Semiannual   Quarterly   Monthly

 

 _____________________________________________________________________

 

 

    Short-Term

 

 

          AFR        5.81%        5.73%       5.69%       5.66%

 

     110% AFR        6.40%        6.30%       6.25%       6.22%

 

     120% AFR        7.00%        6.88%       6.82%       6.78%

 

     130% AFR        7.59%        7.45%       7.38%       7.34%

 

 

    Mid-Term

 

 

          AFR        6.38%        6.28%       6.23%       6.20%

 

     110% AFR        7.03%        6.91%       6.85%       6.81%

 

     120% AFR        7.68%        7.54%       7.47%       7.42%

 

     130% AFR        8.33%        8.16%       8.08%       8.02%

 

     150% AFR        9.64%        9.42%       9.31%       9.24%

 

     175% AFR       11.29%       10.99%      10.84%      10.75%

 

 

    Long-Term

 

          AFR        6.78%        6.67%       6.62%       6.58%

 

     110% AFR        7.47%        7.34%       7.27%       7.23%

 

     120% AFR        8.16%        8.00%       7.92%       7.87%

 

     130% AFR        8.86%        8.67%       8.58%       8.52%

 

 

 _____________________________________________________________________

 

 

                        REV. RUL. 97-7  TABLE 2

 

 

                    Adjusted AFR for February 1997

 

 _____________________________________________________________________

 

                              Period for Compounding

 

                    _________________________________________

 

                    Annual   Semiannual   Quarterly   Monthly

 

 _____________________________________________________________________

 

 

     Short-term

 

     adjusted AFR    3.68%    3.65%        3.63%        3.62%

 

 

     Mid-term

 

     adjusted AFR    4.60%    4.55%        4.52%        4.51%

 

 

     Long-term

 

     adjusted AFR    5.47%    5.40%        5.36%        5.34%

 

 

 _____________________________________________________________________

 

 

                        REV. RUL. 97-7  TABLE 3

 

 

               Rates Under Section 382 for February 1997

 

 

      Adjusted federal long-term rate for the current month    5.47%

 

 

      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.)                                       5.48%

 

 

 _____________________________________________________________________

 

 

                        REV. RUL. 97-7  TABLE 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for February 1997

 

 

       Appropriate percentage for the 70% present

 

       value low-income housing credit                      8.55%

 

 

       Appropriate percentage for the 30% present

 

       value low-income housing credit                      3.66%

 

 

 _____________________________________________________________________

 

 

                        REV. RUL. 97-7  TABLE 5

 

 

               Rate Under Section 7520 for February 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    7.6%

 

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