Applicable Federal Rates for October 2010
The following are the various prescribed rates for federal income tax purposes
The following table applies for purposes of determining the original issue discount
The adjusted long-term exempt rate under IRC § 382 is 3.45% and the rate for ownership changes during the current month is 3.98%.
For purposes of the low-income housing credit the 70% present value credit percentage is 7.58%, and the 30% present value credit percentage is 3.25%. 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 2.0%.