Posted April 20, 2010

Applicable Federal Rates for May 2010

The following are the various prescribed rates for federal income tax purposes for May 2010 as set forth in Revenue Ruling 2010-12.

 

Annual

Semiannual

Quarterly

Monthly

Short-Term

        

AFR

.79%

.79%

.79%

.79%

110% AFR

.87%

.87%

.87%

.87%

120% AFR

.95%

.95%

.95%

.95%

130% AFR

1.03%

1.03%

1.03%

1.03%
         

Mid-Term

        

AFR

2.87%

2.85%

2.84%

2.83%

110% AFR

3.16%

3.14%

3.13%

3.12%

120% AFR

3.45%

3.42%

3.41%

3.40%

130% AFR

3.74%

3.71%

3.69%

3.68%

150% AFR

4.33%

4.28%

4.26%

4.24%

175% AFR

5.05%

4.99%

4.96%

4.94%
         

Long-Term

        

AFR

4.47%

4.42%

4.40%

4.38%

110% AFR

4.92%

4.86%

4.83%

4.81%

120% AFR

5.37%

5.30%

5.27%

5.24%

130% AFR

5.83%

5.75%

5.71%

5.68%

The following table applies for purposes of determining the original issue discount on tax-exempt obligations under IRC § 1288(b):

 

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

.66%

66%

66%

66%
         

Mid-term adjusted AFR

1.88%

1.87%

1.87%

1.86%
         

Long-term adjusted AFR

3.98%

3.94%

3.92%

3.91%

The adjusted long-term exempt rate under IRC § 382 is 3.98% and the rate for ownership changes during the current month is 4.03%.

For purposes of the low-income housing credit the 70% present value credit percentage is 7.85%, and the 30% present value credit percentage is 3.36%. 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 3.4%.

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