rr-06-55.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. 2006-55

This revenue ruling provides various prescribed rates for federal income tax
purposes for November 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. 2006-55 TABLE 1 Applicable Federal Rates (AFR) for November 2006

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

4.89%

4.83%

4.80%

4.78%

110% AFR

5.38%

5.31%

5.28%

5.25%

120% AFR

5.88%

5.80%

5.76%

5.73%

130% AFR

6.38%

6.28%

6.23%

6.20%

Mid-term

AFR

4.69%

4.64%

4.61%

4.60%

110% AFR

5.17%

5.10%

5.07%

5.05%

120% AFR

5.65%

5.57%

5.53%

5.51%

130% AFR

6.12%

6.03%

5.99%

5.96%

150% AFR

7.08%

6.96%

6.90%

6.86%

175% AFR

8.28%

8.12%

8.04%

7.99%

Long-term

AFR

4.90%

4.84%

4.81%

4.79%

110% AFR

5.39%

5.32%

5.29%

5.26%

120% AFR

5.89%

5.81%

5.77%

5.74%

130% AFR

6.39%

6.29%

6.24%

6.21%

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REV. RUL. 2006-55 TABLE 2 Adjusted AFR for November 2006

Period for Compounding

Monthly

Annual

Semiannual

Quarterly

Short-term adjusted AFR

3.40%

3.37%

3.36%

3.35%

Mid-term adjusted AFR

3.57%

3.54%

3.52%

3.51%

Long-term adjusted AFR

4.15%

4.11%

4.09%

4.08%

REV. RUL. 2006-55 TABLE 3
Rates Under Section 382 for November 2006

Adjusted federal long-term rate for the current month
4.15%

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.)
4.41%

## REV. RUL. 2006-55 TABLE 4

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

Appropriate percentage for the 70% present value low-income

housing credit

8.12%

Appropriate percentage for the 30% present value low-income

housing credit

3.48%

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# REV. RUL. 2006-55 TABLE 5 Rate Under Section 7520 for November 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
5.6%