Rev. Rul. 2007-2
Applicable Federal Rates for January
This revenue ruling provides various prescribed rates for federal income tax purposes
for January 2007 (the current month). Table 1 contains the short-term, midterm,
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,
midterm, 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
longterm 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 2007 to pooled income funds described
in section 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.
Table I
January 2007
|
|
|
Period for Compounding
|
|
Applicable Federal Rate (AFR)
|
Annual
|
Semi-annual
|
Quarterly
|
Monthly
|
|
Short-Term
|
|
|
|
|
|
AFR
|
4.88%
|
4.82%
|
4.79%
|
4.77%
|
|
110% AFR
|
5.37%
|
5.30%
|
5.27%
|
5.24%
|
|
120% AFR
|
5.86%
|
5.78%
|
5.74%
|
5.71%
|
|
130% AFR
|
6.37%
|
6.27%
|
6.22%
|
6.19%
|
|
Mid-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%
|
|
150% AFR
|
6.92%
|
6.80%
|
6.74%
|
6.71%
|
|
175% AFR
|
8.09%
|
7.93%
|
7.85%
|
7.80%
|
|
Long-Term
|
|
|
|
|
|
AFR
|
4.73%
|
4.68%
|
4.65%
|
4.64%
|
|
110% AFR
|
5.22%
|
5.15%
|
5.12%
|
5.10%
|
|
120% AFR
|
5.70%
|
5.62%
|
5.58%
|
5.56%
|
|
130% AFR
|
6.17%
|
6.08%
|
6.03%
|
6.00%
|
Table II
Adjusted AFR for January 2007
|
|
|
Period for Compounding
|
|
|
Annual
|
Semi-annual
|
Quarterly
|
Monthly
|
|
Short-term adjusted AFR
|
3.39%
|
3.36%
|
3.35%
|
3.34%
|
|
Mid-term adjusted AFR
|
3.54%
|
3.51%
|
3.49%
|
3.48%
|
|
Long-term adjusted AFR
|
4.03%
|
3.99%
|
3.97%
|
3.96%
|
Table III
Rates Under Section 382 for January 2007
|
|
Adjusted federal long-term rate for the current month
|
4.03%
|
|
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.)
|
4.15%
|
Table IV
Appropriate Percentages Under Section 42(b)(2) for January 2007
|
|
Appropriate Percentage for the 70% present value low-income housing credit
|
8.08%
|
|
Appropriate Percentage for the 30% present value low-income housing credit
|
3.46%
|
Table V
Rate Under Section 7520 for January 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%
|
Table VI
Deemed Rate for Transfers to New Pooled Income Funds During 2007
|
|
Deemed rate of return for transfers during 2007 to pooled income funds that have
been in existence for less than 3 taxable years
|
4.8%
|
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