Menu
Tax Notes logo
HOMETax Notes ResearchFederalIRS Guidancerevenue rulings

IRS Announces Applicable Federal Rates For March.

FEB. 17, 2006

Rev. Rul. 2006-10; 2006-1 C.B. 633

DATED FEB. 17, 2006
DOCUMENT ATTRIBUTES
Citations: Rev. Rul. 2006-10; 2006-1 C.B. 633

Rev. Rul. 2006-10

This revenue ruling provides various prescribed rates for federal income tax purposes for March 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. 2006-10  TABLE 1

 

 

 Applicable Federal Rates (AFR) for March 2006

 

 

                           Period for Compounding

 

                    Annual  Semiannual Quarterly  Monthly

 

 

 Short-term

 

 

 AFR                 4.58%     4.53%     4.50%     4.49%

 

 110% AFR            5.04%     4.98%     4.95%     4.93%

 

 120% AFR            5.51%     5.44%     5.40%     5.38%

 

 130% AFR            5.98%     5.89%     5.85%     5.82%

 

 

 Mid-term

 

 

 AFR                 4.51%     4.46%     4.44%     4.42%

 

 110% AFR            4.97%     4.91%     4.88%     4.86%

 

 120% AFR            5.42%     5.35%     5.31%     5.29%

 

 130% AFR            5.88%     5.80%     5.76%     5.73%

 

 150% AFR            6.80%     6.69%     6.63%     6.60%

 

 175% AFR            7.96%     7.81%     7.74%     7.69%

 

 

 Long-term

 

 

 AFR                 4.68%     4.63%     4.60%     4.59%

 

 110% AFR            5.15%     5.09%     5.06%     5.04%

 

 120% AFR            5.64%     5.56%     5.52%     5.50%

 

 130% AFR            6.11%     6.02%     5.98%     5.95%

 

 

                       REV. RUL. 2006-10 TABLE 2

 

 

                      Adjusted AFR for March 2006

 

 

                           Period for Compounding

 

                    Annual  Semiannual Quarterly  Monthly

 

 Short-term

 

 adjusted AFR        3.15%     3.13%     3.12%     3.11%

 

 

 Mid-term

 

 adjusted AFR        3.50%     3.47%     3.46%     3.45%

 

 

 Long-term

 

 adjusted AFR        4.23%     4.19%     4.17%     4.15%

 

 

                       REV. RUL. 2006-10 TABLE 3

 

 

 Rates Under Section 382 for March 2006

 

 

 Adjusted federal long-term rate for the current month               4.23%

 

 

 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.)              4.36%

 

 

                           REV. RUL. 2006-10  TABLE 4

 

 

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

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                      8.07%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                      3.46%

 

 

                           REV. RUL. 2006-10 TABLE 5

 

 

                     Rate Under Section 7520 for March 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                                               5.4%
DOCUMENT ATTRIBUTES
Copy RID