Rev. Rul. 2000-54

This revenue ruling provides various prescribed rates for federal income tax purposes for December 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 shortterm, 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 2001 interest rate for purposes of sections 846 and 807.

Applicable Federal Rates (AFR) for December 2000

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-Term

AFR 6.10% 6.01% 5.97% 5.94% 110% AFR 6.72% 6.61% 6.56% 6.52% 120% AFR 7.34% 7.21% 7.15% 7.10% 130% AFR 7.96% 7.81% 7.74% 7.69%

Mid-Term

AFR 5.87% 5.79% 5.75% 5.72% 110% AFR 6.47% 6.37% 6.32% 6.29% 120% AFR 7.07% 6.95% 6.89% 6.85% 130% AFR 7.67% 7.53% 7.46% 7.41% 150% AFR 8.88% 8.69% 8.60% 8.54% 175% AFR 10.39% 10.13% 10.00% 9.92%

Long-Term

AFR 5.98% 5.89% 5.85% 5.82% 110% AFR 6.58% 6.48% 6.43% 6.39% 120% AFR 7.19% 7.07% 7.01% 6.97% 130% AFR 7.81% 7.66% 7.59% 7.54%

December 4, 2000 566 2000–49 I.R.B.

REV. RUL. 2000–54 TABLE 2

Adjusted AFR for December 2000

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term adjusted AFR 4.30% 4.25% 4.23% 4.21%

Mid-term adjusted AFR 4.58% 4.53% 4.50% 4.49%

Long-term adjusted AFR 5.31% 5.24% 5.21% 5.18%

REV. RUL. 2000–54 TABLE 3

Rates Under Section 382 for December 2000

Adjusted federal long-term rate for the current month 5.31%

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.) 5.39%

REV. RUL. 2000–54 TABLE 4

Appropriate Percentages Under Section 42(b)(2)

for December 2000

Appropriate percentage for the 70% present value low-income housing credit 8.39%

Appropriate percentage for the 30% present value low-income housing credit 3.59%

REV. RUL. 2000–54 TABLE 5

Rate Under Section 7520 for December 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 7.0%

REV. RUL. 2000–54 TABLE 6

Rate Under Sections 846 and 807

Applicable rate of interest for 2001 for purposes of sections 846 and 807 6.00%

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 December 2000. See Rev. Rul. 2000–54, page 566.

Section 7520.—Valuation Tables

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of December 2000. See Rev. Rul. 2000–54, page 566.

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 December 2000. See Rev. Rul. 2000–54, page 566.

2000–49 I.R.B. 567 December 4, 2000