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IRS Announces Applicable Federal Rates For May.

APR. 16, 2007

Rev. Rul. 2007-29; 2007-1 C.B. 1223

DATED APR. 16, 2007
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Citations: Rev. Rul. 2007-29; 2007-1 C.B. 1223

Rev. Rul. 2007-29

This revenue ruling provides various prescribed rates for federal income tax purposes for May 2007 (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. 2007-29 TABLE 1

 

 

              Applicable Federal Rates (AFR) for May 2007

 

 

                        Period for Compounding

 

 

           Annual   Semiannual  Quarterly  Monthly

 

 

                              Short-term

 

 

 AFR       4.85%     4.79%        4.76%     4.74%

 

 110% AFR  5.34%     5.27%        5.24%     5.21%

 

 120% AFR  5.83%     5.75%        5.71%     5.68%

 

 130% AFR  6.33%     6.23%        6.18%     6.15%

 

 

                               Mid-term

 

 

 AFR       4.62%     4.57%        4.54%     4.53%

 

 110% AFR  5.09%     5.03%        5.00%     4.98%

 

 120% AFR  5.56%     5.48%        5.44%     5.42%

 

 130% AFR  6.03%     5.94%        5.90%     5.87%

 

 150% AFR  6.98%     6.86%        6.80%     6.76%

 

 175% AFR  8.16%     8.00%        7.92%     7.87%

 

 

                               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. 2007-29 TABLE 2

 

 

                       Adjusted AFR for May 2007

 

 

                        Period for Compounding

 

 

                Annual   Semiannual  Quarterly  Monthly

 

 

 Short-term

 

 adjusted AFR     3.47%     3.44%      3.43%     3.42%

 

 

 Mid-term

 

 adjusted AFR     3.61%     3.58%      3.56%     3.55%

 

 

 Long-term

 

 adjusted AFR     4.11%     4.07%      4.05%     4.04%

 

 

                       REV. RUL. 2007-29 TABLE 3

 

 

                 Rates Under Section 382 for May 2007

 

 

 Adjusted federal long-term rate for the current month               4.11%

 

 

 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.)              4.18%

 

 

                       REV. RUL. 2007-29 TABLE 4

 

 

      Appropriate Percentages Under Section 42(b)(2) for May 2007

 

 

 Appropriate percentage for the 70% present value low-income

 

 housing credit                                                      8.11%

 

 

 Appropriate percentage for the 30% present value low-income

 

 housing credit                                                      3.47%

 

 

                       REV. RUL. 2007-29 TABLE 5

 

 

                 Rate Under Section 7520 for May 2007

 

 

 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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