rr-06-10.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. 2006-10

This revenue ruling provides various prescribed rates for federal income tax
purposes for March 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. 2006-10 TABLE 1 Applicable Federal Rates (AFR) for March 2006

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

4.58%

4.53%

4.50%

4.49%

110% AFR

5.04%

4.98%

4.95%

4.93%

120% AFR

5.51%

5.44%

5.40%

5.38%

130% AFR

5.98%

5.89%

5.85%

5.82%

Mid-term

AFR

4.51%

4.46%

4.44%

4.42%

110% AFR

4.97%

4.91%

4.88%

4.86%

120% AFR

5.42%

5.35%

5.31%

5.29%

130% AFR

5.88%

5.80%

5.76%

5.73%

150% AFR

6.80%

6.69%

6.63%

6.60%

175% AFR

7.96%

7.81%

7.74%

7.69%

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. 2006-10 TABLE 2 Adjusted AFR for March 2006

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

3.15%

3.13%

3.12%

3.11%

Mid-term adjusted AFR

3.50%

3.47%

3.46%

3.45%

Long-term adjusted AFR

4.23%

4.19%

4.17%

4.15%

REV. RUL. 2006-10 TABLE 3
Rates Under Section 382 for March 2006

Adjusted federal long-term rate for the current month
4.23%

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.)
4.36%

## REV. RUL. 2006-10 TABLE 4

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

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

8.07%

Appropriate percentage for the 30% present value low-income

housing credit

3.46%

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# REV. RUL. 2006-10 TABLE 5 Rate Under Section 7520 for March 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
5.4%