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July 2006
Applicable Federal Rates

Rev. Rul. 2006-35

Applicable Federal Rates for July

This revenue ruling provides various prescribed rates for federal income tax purposes for July 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. 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 blended annual rate for 2006 for purposes of section 7872.


Table I
July 2006
 

Period for Compounding

Applicable Federal Rate (AFR)

Annual

Semi-annual

Quarterly

Monthly

Short-Term

        

AFR

5.05%

4.99%

4.96%

4.94%

110% AFR

5.57%

5.49%

5.45%

5.43%

120% AFR

6.08%

5.99%

5.95%

5.92%

130% AFR

6.60%

6.49%

6.44%

6.40%
Mid-Term
        

AFR

5.05%

4.99%

4.96%

4.94%

110% AFR

5.57%

5.49%

5.45%

5.43%

120% AFR

6.08%

5.99%

5.95%

5.92%

130% AFR

6.60%

6.49%

6.44%

6.40%

150% AFR

7.63%

7.49%

7.42%

7.38%

175% AFR

8.92%

8.73%

8.64%

8.58%
Long-Term
        

AFR

5.29%

5.22%

5.19%

5.16%

110% AFR

5.82%

5.74%

5.70%

5.67%

120% AFR

6.36%

6.26%

6.21%

6.18%

130% AFR

6.91%

6.79%

6.73%

6.70%
 
Table II
Adjusted AFR for July 2006
 

Period for Compounding
 

Annual

Semi-annual

Quarterly

Monthly

Short-term adjusted AFR

3.60%

3.57%

3.55%

3.54%

Mid-term adjusted AFR

3.81%

3.77%

3.75%

3.74%

Long-term adjusted AFR

4.43%

4.38%

4.36%

4.34%
 
Table III
Rates Under Section 382 for July 2006

Adjusted federal long-term rate for the current month

4.43%

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.)

4.45%
 
Table IV
Appropriate Percentages Under Section 42(b)(2) for July 2006

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

8.21%

Appropriate Percentage for the 30% present value low-income housing credit
3.52%
 
Table V
Rate Under Section 7520 for July 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

6.0%
 
Table VI
Blended Annual Rate for 2006

Section 7872(e)(2) blended annual rate for 2006

4.71%

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