IRS Revenue Ruling
2002-5

 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
2002.


REV. RUL. 2002-5

This revenue ruling provides various prescribed rates for federal
income tax purposes for February 2002 (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. 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. 2002-5 TABLE 1

Applicable Federal Rates (AFR) for February 2002

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 2.74% 2.72% 2.71% 2.70%
110% AFR 3.01% 2.99% 2.98% 2.97%
120% AFR 3.29% 3.26% 3.25% 3.24%
130% AFR 3.57% 3.54% 3.52% 3.51%

Mid-Term
AFR 4.63% 4.58% 4.55% 4.54%
110% AFR 5.10% 5.04% 5.01% 4.99%
120% AFR 5.58% 5.50% 5.46% 5.44%
130% AFR 6.04% 5.95% 5.91% 5.88%
150% AFR 6.99% 6.87% 6.81% 6.77%
175% AFR 8.18% 8.02% 7.94% 7.89%

Long-Term
AFR 5.60% 5.52% 5.48% 5.46%
110% AFR 6.16% 6.07% 6.02% 5.99%
120% AFR 6.73% 6.62% 6.57% 6.53%
130% AFR 7.31% 7.18% 7.12% 7.07%


REV. RUL. 2002-5 TABLE 2

Adjusted AFR for February 2002

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 2.49% 2.47% 2.46% 2.46%

Mid-term
adjusted AFR 3.90% 3.86% 3.84% 3.83%

Long-term
adjusted AFR 5.01% 4.95% 4.92% 4.90%


REV. RUL. 2002-5 TABLE 3

Rates Under Section 382 for February 2002

Adjusted federal long-term rate for the current month 5.01%

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.) 5.01%


REV. RUL. 2002-5 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for February 2002

Appropriate percentage for the 70% present value
low-income housing credit 8.19%

Appropriate percentage for the 30% present value
low-income housing credit 3.51%


REV. RUL. 2002-5 TABLE 5

Rate Under Section 7520 for February 2002

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 5.6%

<<END RULING>>

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