IRS Announces Applicable Federal Rates For January.
Rev. Rul. 2005-2; 2005-1 C.B. 259
- Institutional AuthorsInternal Revenue Service
- Cross-ReferencePart I
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2004-24013
- Tax Analysts Electronic Citation2004 TNT 245-11
Rev. Rul. 2005-2
This revenue ruling provides various prescribed rates for federal income tax purposes for January 2005 (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. 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 2005 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. 2005-2 TABLE 1
Applicable Federal Rates (AFR) for January 2005
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
__________________________________________________________________________
AFR 2.78% 2.76% 2.75% 2.74%
110% AFR 3.06% 3.04% 3.03% 3.02%
120% AFR 3.34% 3.31% 3.30% 3.29%
130% AFR 3.62% 3.59% 3.57% 3.56%
Mid-term
AFR 3.76% 3.73% 3.71% 3.70%
110% AFR 4.14% 4.10% 4.08% 4.07%
120% AFR 4.53% 4.48% 4.46% 4.44%
130% AFR 4.91% 4.85% 4.82% 4.80%
150% AFR 5.68% 5.60% 5.56% 5.54%
175% AFR 6.64% 6.53% 6.48% 6.44%
Long-term
AFR 4.76% 4.70% 4.67% 4.65%
110% AFR 5.24% 5.17% 5.14% 5.12%
120% AFR 5.72% 5.64% 5.60% 5.57%
130% AFR 6.20% 6.11% 6.06% 6.03%
REV. RUL. 2005-2 TABLE 2
Adjusted AFR for January 2005
Period for Compounding
Annual Semiannual Quarterly Monthly
_____________________________________________________________________
Short-term
adjusted AFR 2.01% 2.00% 2.00% 1.99%
Mid-term
adjusted AFR 2.97% 2.95% 2.94% 2.93%
Long-term
adjusted AFR 4.27% 4.23% 4.21% 4.19%
REV. RUL. 2005-2 TABLE 3
Rates Under Section 382 for January 2005
________________________________________________________________________
Adjusted federal long-term rate for
the current month 4.27%
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.) 4.27%
REV. RUL. 2005-2 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for January 2005
_____________________________________________________________________
Appropriate percentage for the 70% present
value low-income housing credit 7.99%
Appropriate percentage for the 30% present
value low-income housing credit 3.42%
REV. RUL. 2005-2 TABLE 5
Rate Under Section 7520 for January 2005
______________________________________________________________________
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 4.60%
REV. RUL. 2005-2 TABLE 6
Deemed Rate for Transfers to New Pooled Income Funds During 2005
____________________________________________________________________
Deemed rate of return for transfers during
2005 to pooled income funds that have been
in existence for less than 3 taxable years 4.0%
- Institutional AuthorsInternal Revenue Service
- Cross-ReferencePart I
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2004-24013
- Tax Analysts Electronic Citation2004 TNT 245-11