Applicable Federal Rates for August 2010
The following are the various prescribed rates for federal income tax purposes for August 2010 as set forth in Revenue Ruling 2010-19.
The following table applies for purposes of determining the original issue discount on tax-exempt obligations under IRC § 1288(b):
The adjusted long-term exempt rate under IRC § 382 is 3.98% and the rate for ownership changes during the current month is 4.01%.
For purposes of the low-income housing credit the 70% present value credit percentage is 7.69%, and the 30% present value credit percentage is 3.30%. Note that under IRC § 42(b)(2) the applicable percentage for non-federally subsidized housing new buildings placed in service after December 31, 2008 and before December 31, 2013, is not to be less than 9%.
The applicable federal rate for determining the present value of an annuity, an interest for life or a term for years, or a remainder or reversionary interest (under IRC § 7520) is 2.6%.