rr-05-32.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. 2005-32

This revenue ruling provides various prescribed rates for federal income tax
purposes for June 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. 2005-32 TABLE 1 Applicable Federal Rates (AFR) for June 2005

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

3.46%

3.43%

3.42%

3.41%

110% AFR

3.81%

3.77%

3.75%

3.74%

120% AFR

4.16%

4.12%

4.10%

4.09%

130% AFR

4.51%

4.46%

4.44%

4.42%

Mid-term

AFR

4.01%

3.97%

3.95%

3.94%

110% AFR

4.42%

4.37%

4.35%

4.33%

120% AFR

4.82%

4.76%

4.73%

4.71%

130% AFR

5.23%

5.16%

5.13%

5.11%

150% AFR

6.05%

5.96%

5.92%

5.89%

175% AFR

7.07%

6.95%

6.89%

6.85%

Long-term

AFR

4.57%

4.52%

4.49%

4.48%

110% AFR

5.03%

4.97%

4.94%

4.92%

120% AFR

5.49%

5.42%

5.38%

5.36%

130% AFR

5.97%

5.88%

5.84%

5.81%

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REV. RUL. 2005-32 TABLE 2 Adjusted AFR for June 2005

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

2.75%

2.73%

2.72%

2.71%

Mid-term adjusted AFR

3.17%

3.15%

3.14%

3.13%

Long-term adjusted AFR

4.20%

4.16%

4.14%

4.12%

REV. RUL. 2005-32 TABLE 3
Rates Under Section 382 for June 2005

Adjusted federal long-term rate for the current month
4.20%

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.)
4.37%

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# REV. RUL. 2005-32 TABLE 4 Appropriate Percentages Under Section 42(b)(2) forJune 2005

REV. RUL. 2005-32 TABLE 5 Rate Under Section 7520 for June 2005

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

8.00%

Appropriate percentage for the 30% present value low-income

housing credit

3.43%

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
4.8%