rr-06-50.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. 2006-50

This revenue ruling provides various prescribed rates for federal income tax
purposes for October 2006 (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. 2006-50 TABLE 1 Applicable Federal Rates (AFR) for October 2006

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

5.00%

4.94%

4.91%

4.89%

110% AFR

5.50%

5.43%

5.39%

5.37%

120% AFR

6.02%

5.93%

5.89%

5.86%

130% AFR

6.52%

6.42%

6.37%

6.34%

Mid-term

AFR

4.82%

4.76%

4.73%

4.71%

110% AFR

5.31%

5.24%

5.21%

5.18%

120% AFR

5.79%

5.71%

5.67%

5.64%

130% AFR

6.29%

6.19%

6.14%

6.11%

150% AFR

7.27%

7.14%

7.08%

7.04%

175% AFR

8.50%

8.33%

8.25%

8.19%

Long-term

AFR

5.02%

4.96%

4.93%

4.91%

110% AFR

5.53%

5.46%

5.42%

5.40%

120% AFR

6.04%

5.95%

5.91%

5.88%

130% AFR

6.55%

6.45%

6.40%

6.36%

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REV. RUL. 2006-50 TABLE 2 Adjusted AFR for October 2006

Period for Compounding

Monthly

Annual

Semiannual

Quarterly

Short-term adjusted AFR

3.50%

3.47%

3.46%

3.45%

Mid-term adjusted AFR

3.69%

3.66%

3.64%

3.63%

Long-term adjusted AFR

4.22%

4.18%

4.16%

4.14%

REV. RUL. 2006-50 TABLE 3
Rates Under Section 382 for October 2006

Adjusted federal long-term rate for the current month
4.22%

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.)
4.52%

## REV. RUL. 2006-50 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for October 2006

Appropriate percentage for the 70% present value low-income

housing credit

8.15%

Appropriate percentage for the 30% present value low-income

housing credit

3.49%

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# REV. RUL. 2006-50 TABLE 5 Rate Under Section 7520 for October 2006

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
5.8%