rr-05-66.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. 2005-66

This revenue ruling provides various prescribed rates for federal income tax
purposes for October 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. 2005-66 TABLE 1 Applicable Federal Rates (AFR) for October 2005

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

3.89%

3.85%

3.83%

3.82%

110% AFR

4.28%

4.24%

4.22%

4.20%

120% AFR

4.67%

4.62%

4.59%

4.58%

130% AFR

5.07%

5.01%

4.98%

4.96%

Mid-term

AFR

4.08%

4.04%

4.02%

4.01%

110% AFR

4.49%

4.44%

4.42%

4.40%

120% AFR

4.91%

4.85%

4.82%

4.80%

130% AFR

5.32%

5.25%

5.22%

5.19%

150% AFR

6.15%

6.06%

6.01%

5.98%

175% AFR

7.19%

7.07%

7.01%

6.97%

Long-term

AFR

4.40%

4.35%

4.33%

4.31%

110% AFR

4.85%

4.79%

4.76%

4.74%

120% AFR

5.29%

5.22%

5.19%

5.16%

130% AFR

5.74%

5.66%

5.62%

5.59%

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REV. RUL. 2005-66 TABLE 2 Adjusted AFR for October 2005

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

2.83%

2.81%

2.80%

2.79%

Mid-term adjusted AFR

3.27%

3.24%

3.23%

3.22%

Long-term adjusted AFR

4.14%

4.10%

4.08%

4.07%

REV. RUL. 2005-66 TABLE 3
Rates Under Section 382 for October 2005

Adjusted federal long-term rate for the current month
4.14%

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.)
4.24%

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REV. RUL. 2005-66 TABLE 5 Rate Under Section 7520 for October 2005

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

7.98%

Appropriate percentage for the 30% present value low-income

housing credit

3.42%

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
5.0%