Part I. Rulings — Internal Revenue Bulletin 1997-16

Section 2032A.—Valuation of Certain Farm, Etc., Real Property

26 CFR 20.2032A–4: Method of valuing farm real property.

Special use value; farms; interest rates. The 1997 interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents.

Rev. Rul. 97–13

This revenue ruling contains a list of the average annual effective interest rates on new loans under the Farm Credit Bank system. This revenue ruling also contains a list of the states within each Farm Credit Bank District.

Under § 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Farm Credit Bank loans are used in computing the special use value of real property used as a farm for which an election is made under § 2032A. The rates in this revenue ruling may be used by estates that value farmland under § 2032A as of a date in 1997.

Average annual effective interest rates, calculated in accordance with § 2032A(e)(7)(A) and § 20.2032A–4(e) of the Estate Tax Regulations, to be used under § 2032A(e)(7)(A)(ii), are set forth in the accompanying Table of Interest Rates (Table 1). The states within each Farm Credit Bank District are set forth in the accompanying Table of Farm Credit Bank Districts (Table 2).

REV. RUL. 97–13 TABLE 1

Rev. Rul. 81–170, 1981–1 C.B. 454, contains an illustrative computation of an average annual effective interest rate. The rates applicable for valuation in 1996 are in Rev. Rul. 96–23, 1996–1 C.B. 198. For rate information for years prior to 1996, see Rev. Rul. 95–38, 1995–1 C.B. 184, and other revenue rulings that are referenced therein.

DRAFTING INFORMATION

The principal author of this revenue ruling is Lane Damazo of the Office of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Lane Damazo on (202) 622– 3090 (not a toll-free call).

TABLE OF INTEREST RATES

(Year of Valuation 1997)

Farm Credit Bank District in Which Property Is Located Interest Rate

Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.88 Omaha . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.09 Sacramento . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.48 St. Paul . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.39 Spokane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.27 Springfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.57 Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.42 Wichita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.21

REV. RUL. 97–13 TABLE 2

TABLE OF FARM CREDIT BANK DISTRICTS

District States

Columbia . . . . . . . . . . . . . . . . . . . . . . . Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, Pennsylvania, South Carolina, Virginia, West Virginia. Omaha . . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Nebraska, South Dakota, Wyoming. Sacramento . . . . . . . . . . . . . . . . . . . . . . Arizona, California, Hawaii, Nevada, Utah. St. Paul . . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, North Dakota, Ohio, Tennessee, Wisconsin. Spokane . . . . . . . . . . . . . . . . . . . . . . . . Alaska, Idaho, Montana, Oregon, Washington. Springfield . . . . . . . . . . . . . . . . . . . . . . Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont. Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . Alabama, Louisiana, Mississippi, Texas. Wichita . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado, Kansas, New Mexico, Oklahoma.

Section 6011.—General Requirement of Return, State or List

Printing of substitutes for Form W–2, Wage and Tax Statement, and Form W–3, Transmittals of Income and Tax Statements. See Rev. Proc. 97–24, page 10.

Section 6041.—Information at Source

26 CFR 1.6041: Return of information as to payments of $600 or more.

Printing of substitutes for Form W–2, Wage and Tax Statement, and Form W–3, Transmittal of Income and Tax Statements. See Rev. Proc. 97–24, page 10.

26 CFR 1.6041–2: Return of information as to payments to employees.

Printing of substitutes for Form W–2, Wage and Tax Statement, and Form W–3, Transmittal of Income and Tax Statements. See Rev. Proc. 97–24, page 10.

Section 6051.—Receipts for Employees

26 CFR 31.6051–1: Statements for employees.

Printing of substitutes for Form W–2, Wage and Tax Statement, and Form W–3, Transmittal of Income and Tax Statements. See Rev. Proc. 97–24, page 10.

Section 6071.—Time for Filing Returns and Other Documents

26 CFR 31.6071(a)–1: Time for filing returns and other documents.

Printing of substitutes for Form W–2, Wage and Tax Statement, and Form W–3, Transmittal of

Income and Tax Statements. See Rev. Proc. 97–24, page 10.

Section 6081.—Extension of Time for Filing Returns

26 CFR 31.6081(a)–1: Extension of time for filing returns.

Printing of substitutes for Form W–2, Wage and Tax Statment, and Form W–3, Transmittal of Income and Tax Statements. See Rev. Proc. 97–24, page 10.

Section 6091.—Place for Filing Returns or Other Documents

Printing of substitutes for Form W–2, Wage and Tax Statement, and Form W–3, Transmittal of Income and Tax Statements. See Rev. Proc. 97–24, page 10.