Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

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

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

Rev. Rul. 2015–18

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

Under § 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Farm Credit System 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 Table 1 of this revenue ruling may be used by estates that value farmland under § 2032A as of a date in 2015.

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 System Bank Territory are set forth in the accompanying Table of Farm Credit System Bank Territories (Table 2).

Rev. Rul. 81–170, 1981–1 C.B. 454, contains an illustrative computation of an

REV. RUL. 2015–18 TABLE 1 TABLE OF INTEREST RATES

average annual effective interest rate. The rates applicable for valuation in 2014 are in Rev. Rul. 2014–21, 2014–34 I.R.B. 381. For rate information for years prior to 2014, see Rev. Rul. 2013–19, 2013–39 I.R.B. 240, and other revenue rulings that are referenced therein.

DRAFTING INFORMATION

The principal author of this revenue ruling is Lane Damazo of the Office of the Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Lane Damazo at (202) 317-6859 (not a toll-free number).

(Year of Valuation 2015) Farm Credit System Bank Servicing State in Which Property is Located Rate

AgFirst, FCB......................................................................................................................................................................... 5.21

AgriBank, FCB ..................................................................................................................................................................... 4.56

CoBank, ACB ....................................................................................................................................................................... 4.17

Texas, FCB............................................................................................................................................................................ 4.73

REV. RUL. 2015–18 TABLE 2 TABLE OF FARM CREDIT SYSTEM BANK TERRITORIES Farm Credit System Bank Location of Property

AgFirst, FCB...................................... Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina,

Pennsylvania, South Carolina, Virginia, West Virginia.

AgriBank, FCB .................................. Arkansas, Illinois, Indiana, Lowa, Kentucky, Michigan, Minnesota, Missouri,

Nebraska, North Dakota, Ohio, South Dakota, Tennessee, Wisconsin, Wyoming.

CoBank, ACB .................................... Alaska, Arizona, California, Colorado, Connecticut, Hawaii, Idaho, Kansas, Maine,

Massachusetts, Montana, New Hampshire, New Jersey, New Mexico, New York, Nevada, Oklahoma, Oregon, Rhode Island, Utah, Vermont, Washington.

Texas, FCB ........................................ Alabama, Louisiana, Mississippi, Texas.

Bulletin No. 2015–34 209 August 24, 2015