IRS Revenue Ruling
2001-12

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 March 2001.


REV. RUL. 2001-12

This revenue ruling provides various prescribed rates for federal
income tax purposes for March 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. 2001-12 TABLE 1

Applicable Federal Rates (AFR) for March 2001

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 4.86% 4.80% 4.77% 4.75%
110% AFR 5.35% 5.28% 5.25% 5.22%
120% AFR 5.84% 5.76% 5.72% 5.69%
130% AFR 6.34% 6.24% 6.19% 6.16%

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 5.58% 5.50% 5.46% 5.44%
110% AFR 6.14% 6.05% 6.00% 5.98%
120% AFR 6.71% 6.60% 6.55% 6.51%
130% AFR 7.28% 7.15% 7.09% 7.05%


REV. RUL. 2001-12 TABLE 2

Adjusted AFR for March 2001

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.44% 3.41% 3.40% 3.39%

Mid-term
adjusted AFR 3.98% 3.94% 3.92% 3.91%

Long-term
adjusted AFR 4.87% 4.81% 4.78% 4.76%


REV. RUL. 2001-12 TABLE 3

Rates Under Section 382 for March 2001

Adjusted federal long-term rate for the current month 4.87%

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.) 5.24%


REV. RUL. 2001-12 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.24%

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


REV. RUL. 2001-12 TABLE 5

Rate Under Section 7520 for March 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>>

TO CONTACT
DON FITCH CPA

Phone Don Fitch CPA Toll Free at (877)CPA-Help or (877)272-4357 or on our Direct Line at (760)674-1722.