Revenue Ruling 2005-38

Rev. Rul. 2005-38
Rev. Rul. 2005-38, 2005-27 I.R.B. 6
                       Internal Revenue Service (I.R.S.)
                                 Revenue Ruling
      FEDERAL RATES; ADJUSTED FEDERAL RATES; ADJUSTED FEDERAL LONG-TERM RATE
                          AND THE LONG-TERM EXEMPT RATE
                             Released: June 17, 2005
                             Published: July 5, 2005

 Section 42.–Low-Income Housing Credit

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 280G.–Golden Parachute Payments

  Federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 382.–Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

  The adjusted applicable federal long-term rate is set forth for the month of July 2005.

Section 412.–Minimum Funding Standards

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 467.–Certain Payments for the Use of Property or Services

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 468.–Special Rules for Mining and Solid Waste Reclamation and Closing Costs

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 482.–Allocation of Income and Deductions Among Taxpayers

  Federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 483.–Interest on Certain Deferred Payments

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 642.–Special Rules for Credits and Deductions

  Federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 807.–Rules for Certain Reserves

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 846.–Discounted Unpaid Losses Defined

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 1288.–Treatment of Original Issue Discount on Tax-Exempt Obligations

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 7520.–Valuation Tables

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 7872.–Treatment of Loans With Below-Market Interest Rates

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.

Section 1274.–Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

  Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for July 2005.

  Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for July 2005.

  This revenue ruling provides various prescribed rates for federal income tax purposes for July 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, mid-term, 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 long-term 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 2005 for purposes of section 7872.

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             REV. RUL. 2005-38 TABLE 1
    Applicable Federal Rates (AFR) for July 2005
               Period for Compounding
            Annual    Semiannual  Quarterly  Monthly
Short-Term
       AFR  3.45%     3.42%       3.41%      3.40%
  110% AFR  3.80%     3.76%       3.74%      3.73%
  120% AFR  4.14%     4.10%       4.08%      4.07%
  130% AFR  4.50%     4.45%       4.43%      4.41%
  Mid-Term
       AFR  3.86%     3.82%       3.80%      3.79%
  110% AFR  4.24%     4.20%       4.18%      4.16%
  120% AFR  4.63%     4.58%       4.55%      4.54%
  130% AFR  5.03%     4.97%       4.94%      4.92%
  150% AFR  5.81%     5.73%       5.69%      5.66%
  175% AFR  6.80%     6.69%       6.63%      6.60%
 Long-Term
       AFR  4.35%     4.30%       4.28%      4.26%
  110% AFR  4.79%     4.73%       4.70%      4.68%
  120% AFR  5.23%     5.16%       5.13%      5.11%
  130% AFR  5.67%     5.59%       5.55%      5.53%
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                   REV. RUL. 2005-38 TABLE 2
                  Adjusted AFR for July 2005
                    Period for Compounding
                         Annual  Semiannual  Quarterly  Monthly
Short-term adjusted AFR  2.82%   2.80%       2.79%      2.78%
Mid-term adjusted AFR    3.06%   3.04%       3.03%      3.02%
Long-term adjusted AFR   4.09%   4.05%       4.03%      4.02%
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                           REV. RUL. 2005-38 TABLE 3
                     Rates Under Section 382 for July 2005
Adjusted federal long-term rate for the current month                     4.09%
Long-term tax-exempt rate for ownership changes during the current month  4.37%
  (the highest of the adjusted federal long-term rates for the current
  month and the prior two months.)
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                           REV. RUL. 2005-38 TABLE 4
         Appropriate Percentages Under Section 42(b)(2) for July 2005
Appropriate percentage for the 70% present value low-income housing       7.95%
  credit
Appropriate percentage for the 30% present value low-income housing       3.41%
  credit
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                           REV. RUL. 2005-38 TABLE 5
                     Rate Under Section 7520 for July 2005
Applicable federal rate for determining the present value of an annuity,   4.6%
  an interest for life or a term of years, or a remainder or reversionary
  interest
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              REV. RUL. 2005-38 TABLE 6
        Rate Under Section 7520 for July 2005
             Blended Annual Rate for 2005
Section 7872(e)(2) blended annual rate for 2005  3.11%
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 Rev. Rul. 2005-38, 2005-27 I.R.B. 6

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June 17th, 2005 |