IRS Revenue Ruling
2000-26

 Code Sec. 2032A

<<FULL TEXT>>

26 CFR 20.2032A-4: Method of valuing farm real property.

Special use value; farms; interest rates. The 2000 interest rates to be
used in computing the special use value of farm real property for which an
election is made under section 2032A of the Code are listed for estates of
decedents.


REV. RUL. 2000-26

This revenue ruling contains a list of the average annual effective
interest rates on new loans under the Farm Credit Bank system. This
revenue ruling also contains a list of the states within each Farm Credit
Bank District.

Under section 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on
new Farm Credit Bank loans are used in computing the special use value of
real property used as a farm for which an election is made under section
2032A. The rates in this revenue ruling may be used by estates that value
farmland under section 2032A as of a date in 2000.

Average annual effective interest rates, calculated in accordance with
section 2032A(e)(7)(A) and section 20.2032A-4(e) of the Estate Tax
Regulations, to be used under section 2032A(e)(7)(A)(ii), are set forth in
the accompanying Table of Interest Rates (Table 1). The states within each
Farm Credit Bank District are set forth in the accompanying Table of Farm
Credit Bank Districts (Table 2).

Rev. Rul. 81-170, 1981-1 C.B. 454, contains an illustrative computation
of an average annual effective interest rate. The rates applicable for
valuation in 1999 are in Rev. Rul. 99-20, 1999-18 I.R.B. 5. For rate
information for years prior to 1999, see Rev. Rul. 98-22, 1998-1 C.B. 999,
and other revenue rulings that are referenced therein.


DRAFTING INFORMATION

The principal author of this revenue ruling, is the Office of Assistant
Chief Counsel (Passthroughs and Special Industries). For further
information regarding this revenue ruling, contact Lane Damazo on (202)
622-3090 (not a toll-free call).


REV. RUL. 2000-26 TABLE 1

TABLE OF INTEREST RATES
(Year of Valuation 2000)
-------------------------------
Farm Credit Bank
District in Which Interest
Property Is Located Rate
------------------- --------
Columbia 9.82
Omaha/Spokane 8.10
Sacramento 8.06
St. Paul 8.26
Springfield 8.93
Texas 8.19
Wichita 8.18


REV. RUL. 2000-26 TABLE 2

TABLE OF FARM CREDIT BANK DISTRICTS

District States
-------- ------
Columbia Delaware, District of Columbia, Florida, Georgia,
Maryland, North Carolina, Pennsylvania, South
Carolina, Virginia, West Virginia.

Omaha/Spokane Alaska, Idaho, Iowa, Montana, Nebraska, Oregon,
South Dakota, Washington, Wyoming.

Sacramento Arizona, California, Hawaii, Nevada, Utah.

St. Paul Arkansas, Illinois, Indiana, Kentucky, Michigan,
Minnesota, Missouri, North Dakota, Ohio, Tennessee,
Wisconsin.

Springfield Connecticut, Maine, Massachusetts, New Hampshire, New
Jersey, New York, Rhode Island, Vermont.

Texas Alabama, Louisiana, Mississippi, Texas.

Wichita Colorado, Kansas, New Mexico, Oklahoma.

<<END RULING>>
 

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