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IRS Announces Applicable Federal Rates For November.

OCT. 18, 2006

Rev. Rul. 2006-55; 2006-2 C.B. 837

DATED OCT. 18, 2006
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Citations: Rev. Rul. 2006-55; 2006-2 C.B. 837

Rev. Rul. 2006-55

This revenue ruling provides various prescribed rates for federal income tax purposes for November 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. 2006-55 TABLE 1

 

 

                Applicable Federal Rates (AFR) for November 2006

 

 

                             Period for Compounding

 

                             ______________________

 

                      Annual     Semiannual     Quarterly     Monthly

 

                      ______     __________     _________     _______

 

 

                                   Short-term

 

                                   __________

 

 

 AFR                  4.89%         4.83%         4.80%        4.78%

 

 110% AFR             5.38%         5.31%         5.28%        5.25%

 

 120% AFR             5.88%         5.80%         5.76%        5.73%

 

 130% AFR             6.38%         6.28%         6.23%        6.20%

 

 

                                    Mid-term

 

                                    ________

 

 

 AFR                  4.69%         4.64%         4.61%        4.60%

 

 110% AFR             5.17%         5.10%         5.07%        5.05%

 

 120% AFR             5.65%         5.57%         5.53%        5.51%

 

 130% AFR             6.12%         6.03%         5.99%        5.96%

 

 150% AFR             7.08%         6.96%         6.90%        6.86%

 

 175% AFR             8.28%         8.12%         8.04%        7.99%

 

 

                                   Long-term

 

                                   _________

 

 

 AFR                  4.90%         4.84%         4.81%        4.79%

 

 110% AFR             5.39%         5.32%         5.29%        5.26%

 

 120% AFR             5.89%         5.81%         5.77%        5.74%

 

 130% AFR             6.39%         6.29%         6.24%        6.21%

 

 

                           REV. RUL. 2006-55 TABLE 2

 

 

                         Adjusted AFR for November 2006

 

 

                             Period for Compounding

 

                             ______________________

 

                      Annual     Semiannual     Quarterly     Monthly

 

                      ______     __________     _________     _______

 

 

 Short-term

 

 adjusted AFR         3.40%         3.37%         3.36%        3.35%

 

 

 Mid-term

 

 adjusted AFR         3.57%         3.54%         3.52%        3.51%

 

 

 Long-term

 

 adjusted AFR         4.15%         4.11%         4.09%        4.08%

 

 

                           REV. RUL. 2006-55 TABLE 3

 

 

                   Rates Under Section 382 for November 2006

 

 

 Adjusted federal long-term rate for the current month              4.15%

 

 

 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.)             4.41%

 

 

                           REV. RUL. 2006-55 TABLE 4

 

 

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

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                     8.12%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                     3.48%

 

 

                           REV. RUL. 2006-55 TABLE 5

 

 

                   Rate Under Section 7520 for November 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                                            5.6%
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