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February 2006
Applicable Federal Rates

Rev. Rul. 2006-7

Applicable Federal Rates for February

This revenue ruling provides various prescribed rates for federal income tax purposes for February 2006 (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. 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.


Table I
February 2006
 

Period for Compounding

Applicable Federal Rate (AFR)

Annual

Semi-annual

Quarterly

Monthly

Short-Term

        

AFR

4.39%

4.34%

4.32%

4.30%

110% AFR

4.83%

4.77%

4.74%

4.72%

120% AFR

5.28%

5.21%

5.18%

5.15%

130% AFR

5.72%

5.64%

5.60%

5.57%
Mid-Term
        

AFR

4.40%

4.35%

4.33%

4.31%

110% AFR

4.85%

4.79%

4.76%

4.74%

120% AFR

5.29%

5.22%

5.19%

5.16%

130% AFR

5.74%

5.66%

5.62%

5.59%

150% AFR

6.64%

6.53%

6.48%

6.44%

175% AFR

7.75%

7.61%

7.54%

7.49%
Long-Term
        

AFR

4.61%

4.56%

4.53%

4.52%

110% AFR

5.08%

5.02%

4.99%

4.97%

120% AFR

5.54%

5.47%

5.43%

5.41%

130% AFR

6.02%

5.93%

5.89%

5.86%
 
Table II
Adjusted AFR for February 2006
 

Period for Compounding
 

Annual

Semi-annual

Quarterly

Monthly

Short-term adjusted AFR

3.20%

3.17%

3.16%

3.15%

Mid-term adjusted AFR

3.53%

3.50%

3.48%

3.47%

Long-term adjusted AFR

4.26%

4.22%

4.20%

4.18%
 
Table III
Rates Under Section 382 for February 2006

Adjusted federal long-term rate for the current month

4.26%

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.)

4.40%
 
Table IV
Appropriate Percentages Under Section 42(b)(2) for February 2006

Appropriate Percentage for the 70% present value low-income housing credit

8.05%

Appropriate Percentage for the 30% present value low-income housing credit
3.45%
 
Table V
Rate Under Section 7520 for February 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

5.2%

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