DON FITCH CPA
Certified Public Accountant
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IRS Revenue Ruling
2001-7

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 382, 1274, 1288,
and other sections of the Code, tables set forth the rates for February
2001.


REV. RUL. 2001-7

This revenue ruling provides various prescribed rates for federal
income tax purposes for February 2001 (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
longterm 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.


REV. RUL. 2001-7 TABLE 1

Applicable Federal Rates (AFR) for February 2001

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.18% 5.11% 5.08% 5.06%
110% AFR 5.70% 5.62% 5.58% 5.56%
120% AFR 6.22% 6.13% 6.08% 6.05%
130% AFR 6.75% 6.64% 6.59% 6.55%

Mid-Term
AFR 5.07% 5.01% 4.98% 4.96%
110% AFR 5.59% 5.51% 5.47% 5.45%
120% AFR 6.10% 6.01% 5.97% 5.94%
130% AFR 6.62% 6.51% 6.46% 6.42%
150% AFR 7.66% 7.52% 7.45% 7.40%
175% AFR 8.96% 8.77% 8.68% 8.61%

Long-Term
AFR 5.48% 5.41% 5.37% 5.35%
110% AFR 6.04% 5.95% 5.91% 5.88%
120% AFR 6.60% 6.49% 6.44% 6.40%
130% AFR 7.15% 7.03% 6.97% 6.93%


REV. RUL. 2001-7 TABLE 2

Adjusted AFR for February 2001

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.91% 3.87% 3.85% 3.84%

Mid-term
adjusted AFR 4.25% 4.21% 4.19% 4.17%

Long-term
adjusted AFR 4.92% 4.86% 4.83% 4.81%


REV RUL. 2001-7 TABLE 3

Rates Under Section 382 for February 2001

Adjusted federal long-term rate for the current month 4.92%

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.) 5.31%


REV. RUL. 2001-7 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.23%

Appropriate percentage for the 30% present value
low-income housing credit 3.53%


REV. RUL. 2001-7 TABLE 5

Rate Under Section 7520 for February 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 6.2%

<<END RULING>>

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