Section 1274.—Determi- nation of Issue Price in the Case of Certain Debt Instru- ments…

(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, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for September 2005.

Rev. Rul. 2005–57

This revenue ruling provides various prescribed rates for federal income tax purposes for September 2005 (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.

Applicable Federal Rates (AFR) for September 2005

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

AFR 3.90% 3.86% 3.84% 3.83% 110% AFR 4.30% 4.25% 4.23% 4.21% 120% AFR 4.68% 4.63% 4.60% 4.59% 130% AFR 5.08% 5.02% 4.99% 4.97%

Mid-term

AFR 4.19% 4.15% 4.13% 4.11% 110% AFR 4.62% 4.57% 4.54% 4.53% 120% AFR 5.04% 4.98% 4.95% 4.93% 130% AFR 5.47% 5.40% 5.36% 5.34% 150% AFR 6.33% 6.23% 6.18% 6.15% 175% AFR 7.39% 7.26% 7.20% 7.15%

September 6, 2005 466 2005–36 I.R.B.

REV. RUL. 2005–57 TABLE 1 - Continued

Applicable Federal Rates (AFR) for September 2005

Period for Compounding

Annual Semiannual Quarterly Monthly

Long-term

AFR 4.52% 4.47% 4.45% 4.43% 110% AFR 4.98% 4.92% 4.89% 4.87% 120% AFR 5.43% 5.36% 5.32% 5.30% 130% AFR 5.89% 5.81% 5.77% 5.74%

REV. RUL. 2005–57 TABLE 2

Adjusted AFR for September 2005

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term adjusted 2.79% 2.77% 2.76% 2.75% AFR

Mid-term adjusted AFR 3.31% 3.28% 3.27% 3.26%

Long-term adjusted 4.24% 4.20% 4.18% 4.16% AFR

REV. RUL. 2005–57 TABLE 3

Rates Under Section 382 for September 2005

Adjusted federal long-term rate for the current month 4.24%

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.) 4.24%

REV. RUL. 2005–57 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for September 2005 Appropriate percentage for the 70% present value low-income housing credit 8.01%

Appropriate percentage for the 30% present value low-income housing credit 3.43%

REV. RUL. 2005–57 TABLE 5

Rate Under Section 7520 for September 2005

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 5.0%

of September 2005. See Rev. Rul. 2005-57, page 466.