Rev. Rul. 2000-1

This revenue ruling provides various prescribed rates for federal income tax purposes for January 2000 (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. 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. Finally, Table 6 contains the deemed rate of return for transfers made during calendar year 2000 to pooled income funds described in § 642(c)(5) that have been in existence for less than 3 taxable years immediately preceding the taxable year in which the transfer is made.

January 10, 2000 250 2000–2 I.R.B.

REV. RUL. 2000-1 TABLE 1

Applicable Federal Rates (AFR) for January 2000

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-Term

AFR 5.88% 5.80% 5.76% 5.73% 110% AFR 6.48% 6.38% 6.33% 6.30% 120% AFR 7.08% 6.96% 6.90% 6.86% 130% AFR 7.68% 7.54% 7.47% 7.42%

Mid-Term

AFR 6.21% 6.12% 6.07% 6.04% 110% AFR 6.84% 6.73% 6.67% 6.64% 120% AFR 7.47% 7.34% 7.27% 7.23% 130% AFR 8.12% 7.96% 7.88% 7.83% 150% AFR 9.39% 9.18% 9.08% 9.01% 175% AFR 11.00% 10.71% 10.57% 10.48%

Long-Term

AFR 6.45% 6.35% 6.30% 6.27% 110% AFR 7.11% 6.99% 6.93% 6.89% 120% AFR 7.77% 7.62% 7.55% 7.50% 130% AFR 8.43% 8.26% 8.18% 8.12%

REV. RUL. 2000-1 TABLE 2

Adjusted AFR for January 2000

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term adjusted AFR 4.01% 3.97% 3.95% 3.94%

Mid-term adjusted AFR 4.66% 4.61% 4.58% 4.57%

Long-term adjusted AFR 5.59% 5.51% 5.47% 5.45%

2000–2 I.R.B. 251 January 10, 2000

REV. RUL. 2000-1 TABLE 3

Rates Under Section 382 for January 2000

Adjusted federal long-term rate for the current month 5.59%

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.) 5.72%

REV. RUL. 2000-1 TABLE 4

Appropriate Percentages Under Section 42(b)(2)

for January 2000

Appropriate percentage for the 70% present value low-income housing credit 8.48%

Appropriate percentage for the 30% present value low-income housing credit 3.64%

REV. RUL. 2000-1 TABLE 5

Rate Under Section 7520 for January 2000

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 7.4%