IRS Revenue Ruling
2001-3 

 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 sections of the Code, tables set forth the rates for January
2001.


REV. RUL. 2001-3

This revenue ruling provides various prescribed rates for federal
income tax purposes for January 2001 (the current) month). Table 1
contains the short-term, mid-term, and long-term applicable federal rates
(AIR) 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 2001 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. 2001-3 TABLE 1

Applicable Federal Rates (AFR) for January 2001

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.90% 5.82% 5.78% 5.75%
110% AFR 6.50% 6.40% 6.35% 6.32%
120% AFR 7.10% 6.98% 6.92% 6.88%
130% AFR 7.71% 7.57% 7.50% 7.45%

Mid-Term
AFR 5.61% 5.53% 5.49% 5.47%
110% AFR 6.17% 6.08% 6.03% 6.00%
120% AFR 6.75% 6.64% 6.59% 6.55%
130% AFR 7.32% 7.19% 7.13% 7.08%
150% AFR 8.47% 8.30% 8.22% 8.16%
175% AFR 9.91% 9.68% 9.57% 9.49%

Long-Term
AFR 5.78% 5.70% 5.66% 5.63%
110% AFR 6.37% 6.27% 6.22% 6.19%
120% AFR 6.96% 6.84% 6.78% 6.74%
130% AFR 7.55% 7.41% 7.34% 7.30%


REV. RUL. 2001-3 TABLE 2

Applicable Federal Rates (AIR) for January 2001

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
adjusted AFR 4.18% 4.14% 4.12% 4.10%

Mid-Term
adjusted AFR 4.52% 4.47% 4.45% 4.43%

Long-Term
adjusted AFR 5.24% 5.17% 5.14% 5.12%


REV. RUL. 2001-3 TABLE 3

Rates Under Section 382 for January 2001

Adjusted federal long-term rate for the current month 5.24%

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.) 5.39%


REV. RUL. 2001-3 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for January 2001

Appropriate percentage for the 70% present value
low-income housing credit 8.33%

Appropriate percentage for the 30% present value
low-income housing credit 3.57%


REV. RUL. 2001-3 TABLE 5

Rate Under Section 7520 for January 2001

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 6.8%


REV. RUL. 2001-3 TABLE 6

Deemed Rate for Transfers to New Pooled Income Funds During 2001

Deemed rate of return for transfers during 2001 to
pooled income funds that have been in existence
for less than 3 taxable years 6.6%

<<END RULING>>

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