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May 2005
Applicable Federal Rates

Rev. Rul. 2005-27

Applicable Federal Rates for May

This revenue ruling provides various prescribed rates for federal income tax purposes for May 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, 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

Applicable Federal Rate (AFR)

Annual

Semi-annual

Quarterly

Monthly
May 2005
 

Period for Compounding

Short-Term

        

AFR

3.54%

3.51%

3.49%

3.48%

110% AFR

3.90%

3.86%

3.84%

3.83%

120% AFR

4.25%

4.21%

4.19%

4.17%

130% AFR

4.61%

4.56%

4.53%

4.52%
Mid-Term
        

AFR

4.28%

4.24%

4.22%

4.20%

110% AFR

4.71%

4.66%

4.63%

4.62%

120% AFR

5.15%

5.09%

5.06%

5.04%

130% AFR

5.59%

5.51%

5.47%

5.45%

150% AFR

6.46%

6.36%

6.31%

6.28%

175% AFR

7.56%

7.42%

7.35%

7.31%
Long-Term
        

AFR

4.83%

4.77%

4.74%

4.72%

110% AFR

5.32%

5.25%

5.22%

5.19%

120% AFR

5.80%

5.72%

5.68%

5.65%

130% AFR

6.30%

6.20%

6.15%

6.12%
 
Table II

Adjusted AFR for May 2005
 

Period for Compounding
 

Annual

Semi-annual

Quarterly

Monthly

Short-term adjusted AFR

2.61%

2.59%

2.58%

2.58%

Mid-term adjusted AFR

3.29%

3.26%

3.25%

3.24%

Long-term adjusted AFR

4.37%

4.32%

4.30%

4.28%
 
Table III

Rates Under Section 382 for May 2005

Adjusted federal long-term rate for the current month

4.37%

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.)

4.37%
 
Table IV

Appropriate Percentages Under Section 42(b)(2) for May 2005

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

8.06%

Appropriate Percentage for the 30% present value low-income housing credit

 3.45%
 
Table V

Rate Under Section 7520 for May 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

5.2%

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