rr-02-05.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. 2002-5
This revenue ruling provides various prescribed rates for
federal income tax purposes for February 2002 (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. 2002-5 TABLE 1

Applicable Federal Rates (AFR) for February 2002

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-Term

AFR 2.74% 2.72% 2.71% 2.70%

110% AFR 3.01% 2.99% 2.98% 2.97%

120% AFR 3.29% 3.26% 3.25% 3.24%

130% AFR 3.57% 3.54% 3.52% 3.51%

Mid-Term

AFR 4.63% 4.58% 4.55% 4.54%

110% AFR 5.10% 5.04% 5.01% 4.99%

120% AFR 5.58% 5.50% 5.46% 5.44%

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130% AFR 6.04% 5.95% 5.91% 5.88%

150% AFR 6.99% 6.87% 6.81% 6.77%

175% AFR 8.18% 8.02% 7.94% 7.89%

Long-Term

AFR 5.60% 5.52% 5.48% 5.46%

110% AFR 6.16% 6.07% 6.02% 5.99%

120% AFR 6.73% 6.62% 6.57% 6.53%
130% AFR 7.31% 7.18% 7.12% 7.07%

REV. RUL. 2002-5 TABLE 2

Adjusted AFR for February 2002

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

adjusted AFR 2.49% 2.47% 2.46% 2.46%

Mid-term

adjusted AFR 3.90% 3.86% 3.84% 3.83%

4

Long-term

adjusted AFR 5.01% 4.95% 4.92% 4.90%

REV. RUL. 2002-5 TABLE 3

Rates Under Section 382 for February 2002

Adjusted federal long-term rate for the current month 5.01%

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.) 5.01%

REV. RUL. 2002-5 TABLE 4

Appropriate Percentages Under Section 42(b)(2)

for February 2002

Appropriate percentage for the 70% present

value low-income housing credit 8.19%

Appropriate percentage for the 30% present

5

value low-income housing credit 3.51%

REV. RUL. 2002-5 TABLE 5

Rate Under Section 7520 for February 2002

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 5.6%