rr-06-29.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. 2006-29

This revenue ruling provides various prescribed rates for federal income tax
purposes for June 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. 2006-29 TABLE 1 Applicable Federal Rates (AFR) for June 2006

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

4.99%

4.93%

4.90%

4.88%

110% AFR

5.49%

5.42%

5.38%

5.36%

120% AFR

6.01%

5.92%

5.88%

5.85%

130% AFR

6.51%

6.41%

6.36%

6.33%

Mid-term

AFR

5.06%

5.00%

4.97%

4.95%

110% AFR

5.58%

5.50%

5.46%

5.44%

120% AFR

6.09%

6.00%

5.96%

5.93%

130% AFR

6.61%

6.50%

6.45%

6.41%

150% AFR

7.64%

7.50%

7.43%

7.39%

175% AFR

8.94%

8.75%

8.66%

8.59%

Long-term

AFR

5.32%

5.25%

5.22%

5.19%

110% AFR

5.86%

5.78%

5.74%

5.71%

120% AFR

6.40%

6.30%

6.25%

6.22%

130% AFR

6.95%

6.83%

6.77%

6.73%

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REV. RUL. 2006-29 TABLE 2 Adjusted AFR for June 2006

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

3.61%

3.58%

3.56%

3.55%

Mid-term adjusted AFR

3.82%

3.78%

3.76%

3.75%

Long-term adjusted AFR

4.45%

4.40%

4.38%

4.36%

REV. RUL. 2006-29 TABLE 3
Rates Under Section 382 for June 2006

Adjusted federal long-term rate for the current month
4.45%

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.)
4.45%

REV. RUL. 2006-29 TABLE 4

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

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

8.21%

Appropriate percentage for the 30% present value low-income

housing credit

3.52%

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# REV. RUL. 2006-29 TABLE 5 Rate Under Section 7520 for June 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
6.0%