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May 2006
Applicable Federal Rates

Rev. Rul. 2006-24

Applicable Federal Rates for May

This revenue ruling provides various prescribed rates for federal income tax purposes for May 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, 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
May 2006
 

Period for Compounding

Applicable Federal Rate (AFR)

Annual

Semi-annual

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

4.84%

4.78%

4.75%

4.73%

110% AFR

5.33%

5.26%

5.23%

5.20%

120% AFR

5.82%

5.74%

5.70%

5.67%

130% AFR

6.31%

6.21%

6.16%

6.13%

150% AFR

7.30%

7.17%

7.11%

7.07%

175% AFR

8.55%

8.37%

8.28%

8.23%
Long-Term
        

AFR

5.00%

4.94%

4.91%

4.89%

110% AFR

5.50%

5.43%

5.39%

5.37%

120% AFR

6.02%

5.93%

5.89%

5.86%

130% AFR

6.52%

6.42%

6.37%

6.34%
 
Table II
Adjusted AFR for May 2006
 

Period for Compounding
 

Annual

Semi-annual

Quarterly

Monthly

Short-term adjusted AFR

3.46%

3.43%

3.42%

3.41%

Mid-term adjusted AFR

3.66%

3.63%

3.61%

3.60%

Long-term adjusted AFR

4.30%

4.25%

4.23%

4.21%
 
Table III
Rates Under Section 382 for May 2006

Adjusted federal long-term rate for the current month

4.30%

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.)

4.30%
 
Table IV
Appropriate Percentages Under Section 42(b)(2) for May 2006

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

8.15%

Appropriate Percentage for the 30% present value low-income housing credit
3.49%
 
Table V
Rate Under Section 7520 for May 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

5.8%

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