Rev. Rul. 2000-23

This revenue ruling provides various prescribed rates for federal income tax purposes for May 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. Finally, Table 5 contains the federal rate for deter

May 8, 2000 964 2000–19 I.R.B.

mining 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. 2000-23 TABLE 1

Applicable Federal Rates (AFR) for May 2000

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-Term

AFR 6.42% 6.32% 6.27% 6.24% 110% AFR 7.07% 6.95% 6.89% 6.85% 120% AFR 7.72% 7.58% 7.51% 7.46% 130% AFR 8.39% 8.22% 8.14% 8.08%

Mid-Term

AFR 6.40% 6.30% 6.25% 6.22% 110% AFR 7.05% 6.93% 6.87% 6.83% 120% AFR 7.70% 7.56% 7.49% 7.44% 130% AFR 8.36% 8.19% 8.11% 8.05% 150% AFR 9.67% 9.45% 9.34% 9.27% 175% AFR 11.33% 11.03% 10.88% 10.78%

Long-Term

AFR 6.20% 6.11% 6.06% 6.03% 110% AFR 6.83% 6.72% 6.66% 6.63% 120% AFR 7.46% 7.33% 7.26% 7.22% 130% AFR 8.10% 7.94% 7.86% 7.81%

REV. RUL. 2000-23 TABLE 2

Adjusted AFR for May 2000

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term adjusted AFR 4.34% 4.29% 4.27% 4.25%

Mid-term adjusted AFR 4.91% 4.85% 4.82% 4.80%

Long-term adjusted AFR 5.57% 5.49% 5.45% 5.43%

R EV. RUL. 2000-23 TABLE 3

Rates Under Section 382 for May 2000

Adjusted federal long-term rate for the current month 5.57%

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.) 5.84%

REV. RUL. 2000-23 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for May 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 3.63%

2000–19 I.R.B. 965 May 8, 2000

REV. RUL. 2000-23 TABLE 5

Rate Under Section 7520 for May 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 7.8%

Section 1288.—Treatment of Original Issue Discounts on Tax- Exempt Obligations

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of May 2000. See Rev. Rul. 2000–23, page 964.

Section 7520.—Valuation Tables

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of May 2000. See Rev. Rul. 2000–23, page 964.

Section 7872.—Treatment of Loans with Below-Market Interest Rates

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of May 2000. See Rev. Rul. 2000–23, page 964.

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