IRS Revenue Ruling
2000-1

 Code Secs. 1274, 42, 280G, 382, 412, 467 ....

<<FULL TEXT>>

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846,
1288, 7520, 7872.)

Federal rates; adjusted federal rates; adjusted federal long-term rate,
and the long-term exempt rate. For purposes of sections 1274, 1288, 382,
and other section of the Code, tables set forth the rates for January
2000.


REV. RUL. 2000-1

This revenue ruling provides various prescribed rates for federal
income tax purposes for January 2000 (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. 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. Finally, Table 6 contains the deemed rate of return for
transfers made during calendar year 2000 to pooled income funds described
in section 642(c)(5) that have been in existence for less than 3 taxable
years immediately preceding the taxable year in which the transfer is
made.


REV. RUL. 2000-1 TABLE 1

Applicable Federal Rates (AFR) for January 2000

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.88% 5.80% 5.76% 5.73%
110% AFR 6.48% 6.38% 6.33% 6.30%
120% AFR 7.08% 6.96% 6.90% 6.86%
130% AFR 7.68% 7.54% 7.47% 7.42%

Mid-Term
AFR 6.21% 6.12% 6.07% 6.04%
110% AFR 6.84% 6.73% 6.67% 6.64%
120% AFR 7.47% 7.34% 7.27% 7.23%
130% AFR 8.12% 7.96% 7.88% 7.83%
150% AFR 9.39% 9.18% 9.08% 9.01%
175% AFR 11.00% 10.71% 10.57% 10.48%

Long-Term
AFR 6.45% 6.35% 6.30% 6.27%
110% AFR 7.11% 6.99% 6.93% 6.89%
120% AFR 7.77% 7.62% 7.55% 7.50%
130% AFR 8.43% 8.26% 8.18% 8.12%


REV. RUL. 2000-1 TABLE 2

Adjusted AFR for January 2000

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 4.01% 3.97% 3.95% 3.94%

Mid-term
adjusted AFR 4.66% 4.61% 4.58% 4.57%

Long-term
adjusted AFR 5.59% 5.51% 5.47% 5.45%


REV. RUL. 2000-1 TABLE 3

Rates Under Section 382 for January 2000

Adjusted federal long-term rate for the current month 5.59%
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.) 5.72%


REV. RUL. 2000-1 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for January 2000

Appropriate percentage for the 70% present value
low-income housing credit 8.48%
Appropriate percentage for the 30% present value
low-income housing credit 3.64%


REV. RUL. 2000-1 TABLE 5

Rate Under Section 7520 for January 2000

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 7.4%


REV. RUL. 2000-1 TABLE 6

Deemed Rate of Transfers to New Pooled Income Funds During 2000

Deemed rate of return for transfers during 2000 to
pooled income funds that have been in existence
for less than 3 taxable years 6.80%

<<END RULING>>
 

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