rr-01-07.pdf

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# Part I

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

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846,
1288, 7520, 7872.)

Rev. Rul. 2001-7

This revenue ruling provides various prescribed rates for federal
income tax purposes for February 2001 (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.

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REV. RUL. 2001-7 TABLE 1 Applicable Federal Rates (AFR) for February 2001 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

5.18%

5.11%

5.08%

5.06%

110% AFR

5.70%

5.62%

5.58%

5.56%

120% AFR

6.22%

6.13%

6.08%

6.05%

130% AFR

6.75%

6.64%

6.59%

6.55%

Mid-Term

AFR

5.07%

5.01%

4.98%

4.96%

110% AFR

5.59%

5.51%

5.47%

5.45%

120% AFR

6.10%

6.01%

5.97%

5.94%

130% AFR

6.62%

6.51%

6.46%

6.42%

150% AFR

7.66%

7.52%

7.45%

7.40%

175% AFR

8.96%

8.77%

8.68%

8.61%

Long-Term

AFR

5.48%

5.41%

5.37%

5.35%

110% AFR

6.04%

5.95%

5.91%

5.88%

120% AFR

6.60%

6.49%

6.44%

6.40%

130% AFR

7.15%

7.03%

6.97%

6.93%

REV. RUL. 2001-7 TABLE 2 Adjusted AFR for February 2001

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.91%

3.87%

3.85%

3.84%

Mid-term adjusted AFR

4.25%

4.21%

4.19%

4.17%

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Long-term

adjusted AFR

4.92%

4.86%

4.83%

4.81%

REV. RUL. 2001-7 TABLE 3

Rates Under Section 382 for February 2001
Adjusted federal long-term rate for the current month
4.92%

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. )

5.31%

## REV. RUL. 2001-7 TABLE 4

Appropriate Percentages Under Section 42 (b) (2)
for February 2001

Appropriate percentage for the 70% present

value low-income housing credit

8.23%

Appropriate percentage for the 30% present

value low-income housing credit

3.53%

# REV. RUL. 2001-7 TABLE 5

Rate Under Section 7520 for February 2001

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
6.2%