rr-05-23.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. 2005-23

This revenue ruling provides various prescribed rates for federal income tax
purposes for April 2005 (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. 2005-23 TABLE 1 Applicable Federal Rates (AFR) for April 2005

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

3.35%

3.32%

3.31%

3.30%

110% AFR

3.68%

3.65%

3.63%

3.62%

120% AFR

4.02%

3.98%

3.96%

3.95%

130% AFR

4.37%

4.32%

4.30%

4.28%

Mid-term

AFR

4.09%

4.05%

4.03%

4.02%

110% AFR

4.51%

4.46%

4.44%

4.42%

120% AFR

4.92%

4.86%

4.83%

4.81%

130% AFR

5.34%

5.27%

5.24%

5.21%

150% AFR

6.17%

6.08%

6.03%

6.00%

175% AFR

7.22%

7.09%

7.03%

6.99%

Long-term

AFR

4.68%

4.63%

4.60%

4.59%

110% AFR

5.15%

5.09%

5.06%

5.04%

120% AFR

5.64%

5.56%

5.52%

5.50%

130% AFR

6.11%

6.02%

5.98%

5.95%

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REV. RUL. 2005-23 TABLE 2 Adjusted AFR for April 2005

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

2.40%

2.39%

2.38%

2.38%

Mid-term adjusted AFR

3.03%

3.01%

3.00%

2.99%

Long-term adjusted AFR

4.19%

4.15%

4.13%

4.11%

REV. RUL. 2005-23 TABLE 3
Rates Under Section 382 for April 2005

Adjusted federal long-term rate for the current month
4.19%

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.)
4.20%

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# REV. RUL. 2005-23 TABLE 4 Appropriate Percentages Under Section 42(b)(2) for April 2005

REV. RUL. 2005-23 TABLE 5 Rate Under Section 7520 for April 2005

Appropriate percentage for the 70% present value low-income housing credit

8.02%

Appropriate percentage for the 30% present value low-income

housing credit

3.44%

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
5.00%