IRS Revenue Ruling
2002-25

 
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 May 2002.


REV. RUL. 2002-25

This revenue ruling provides various prescribed rates for federal
income tax purposes for May 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. 2002-25 TABLE 1

Applicable Federal Rates (AFR) for May 2002

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 3.21% 3.18% 3.17% 3.16%
110% AFR 3.53% 3.50% 3.48% 3.47%
120% AFR 3.86% 3.82% 3.80% 3.79%
130% AFR 4.17% 4.13% 4.11% 4.09%

Mid-Term
AFR 4.99% 4.93% 4.90% 4.88%
110% AFR 5.49% 5.42% 5.38% 5.36%
120% AFR 6.01% 5.92% 5.88% 5.85%
130% AFR 6.51% 6.41% 6.36% 6.33%
150% AFR 7.54% 7.40% 7.33% 7.29%
175% AFR 8.82% 8.63% 8.54% 8.48%

Long-Term
AFR 5.85% 5.77% 5.73% 5.70%
110% AFR 6.45% 6.35% 6.30% 6.27%
120% AFR 7.04% 6.92% 6.86% 6.82%
130% AFR 7.64% 7.50% 7.43% 7.39%


REV. RUL. 2002-25 TABLE 2

Adjusted AFR for May 2002

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 2.56% 2.54% 2.53% 2.53%

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

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


REV. RUL. 2002-25 TABLE 3

Rates Under Section 382 for May 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. 2002-25 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.27%

Appropriate percentage for the 30% present value
low-income housing credit 3.54%


REV. RUL. 2002-25 TABLE 5

Rate Under Section 7520 for May 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 6.0%

<<END RULING>>

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