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IRS ANNOUNCES APPLICABLE FEDERAL RATES FOR NOVEMBER.

NOV. 4, 1996

Rev. Rul. 96-52; 1996-2 C.B. 81

DATED NOV. 4, 1996
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Citations: Rev. Rul. 96-52; 1996-2 C.B. 81

Rev. Rul. 96-52

This revenue ruling provides various prescribed rates for federal income tax purposes for November 1996 (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. 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.

                        REV. RUL. 96-52 TABLE 1

 

 

           Applicable Federal Rates (AFR) for November 1996

 

 

                        Period for Compounding

 

 _____________________________________________________________________

 

 

                    Annual     Semiannual   Quarterly   Monthly

 

                    ______     __________   _________   _______

 

 

 Short-Term

 

 __________

 

 

      AFR            5.96%        5.87%        5.83%      5.80%

 

 110% AFR            6.56%        6.46%        6.41%      6.37%

 

 120% AFR            7.16%        7.04%        6.98%      6.94%

 

 130% AFR            7.78%        7.63%        7.56%      7.51%

 

 

 Mid-Term

 

 ________

 

 

      AFR            6.60%        6.49%        6.44%      6.40%

 

 110% AFR            7.27%        7.14%        7.08%      7.04%

 

 120% AFR            7.94%        7.79%        7.72%      7.67%

 

 130% AFR            8.62%        8.44%        8.35%      8.30%

 

 150% AFR            9.98%        9.74%        9.62%      9.55%

 

 175% AFR           11.68%       11.36%       11.20%     11.10%

 

 

 Long-Term

 

 _________

 

 

      AFR            7.02%        6.90%        6.84%      6.80%

 

 110% AFR            7.73%        7.59%        7.52%      7.47%

 

 120% AFR            8.45%        8.28%        8.20%      8.14%

 

 130% AFR            9.17%        8.97%        8.87%      8.81%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 96-52 TABLE 2

 

 

                    Adjusted AFR for November 1996

 

 

                        Period for Compounding

 

 _____________________________________________________________________

 

 

                     Annual    Semiannual    Quarterly    Monthly

 

                     ______    __________    _________    _______

 

 

 Short-term

 

 adjusted AFR         3.95%       3.91%        3.89%        3.88%

 

 

 Mid-term

 

 adjusted AFR         4.73%       4.68%        4.65%        4.64%

 

 

 Long-term

 

 adjusted AFR         5.60%       5.52%        5.48%        5.46%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 96-52 TABLE 3

 

 

               Rates Under Section 382 for November 1996

 

 

 Adjusted federal long-term rate for the current month    5.60%

 

 

 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.)                                       5.64%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 96-52 TABLE 4

 

 

            Appropriate Percentages Under Section 42(b)(2)

 

                           for November 1996

 

 

 Appropriate percentage for the 70% present

 

 value low-income housing credit                           8.60%

 

 

 Appropriate percentage for the 30% present

 

 value low-income housing credit                           3.69%

 

 _____________________________________________________________________

 

 

                        REV. RUL. 96-52 TABLE 5

 

 

               Rate Under Section 7520 for November 1996

 

 

 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          8.0%

 

 _____________________________________________________________________
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