Tax News

CCH (cch.taxgroup.com) reports:

Various prescribed rates for federal income tax purposes for January 2008 have been provided by the IRS. The annual short-term, mid-term, and long-term applicable federal interest rates (AFRs) are 3.18 percent, 3.58 percent and 4.46 percent, respectively. The semiannual short-term, mid-term, and long-term AFRs are 3.16 percent, 3.55 percent and 4.41 percent, respectively. Quarterly short-term, mid-term and long-term AFRs are 3.15 percent, 3.53 percent and 4.39 percent, respectively. Finally, the monthly short-term, mid-term and long-term rates are 3.14 percent, 3.52 percent and 4.37 percent, respectively.
The short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFRs) for January 2008 for purposes of Code Sec. 1288(b) are 3.05 percent, 3.39 percent and 4.25 percent, respectively, when annual compounding is used.
The Code Sec. 382 adjusted federal long-term rate is 4.25 percent, and the long-term tax-exempt rate is 4.34 percent. The Code Sec. 42(b)(2) appropriate percentage for the 70-percent present-value, low-income housing credit is 7.93 percent, and the appropriate percentage for the 30-percent present-value low-income housing credit is 3.40 percent. The Code Sec. 7520 AFR for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest is 4.4 percent. Finally, the deemed rate for transfers during 2008 to new pooled income funds, as described in Code Sec. 642(c)(5), that have been in existence for less than three tax years, is 4.8 percent.
Rev. Rul. 2008-4, 2008FED ¶46,205
Rev. Rul. 2008-4, FINH ¶30,569
Other References:
Code Sec. 42
CCH Reference - 2007FED ¶173.02
CCH Reference - 2007FED ¶176.01
CCH Reference - 2007FED ¶4305.03
Code Sec. 280G
CCH Reference - 2007FED ¶15,152.85
Code Sec. 382
CCH Reference - 2007FED ¶17,115.28
Code Sec. 642
CCH Reference - 2007FED ¶24,308.1885
CCH Reference - FINH ¶16,801.11
Code Sec. 807
CCH Reference - 2007FED ¶25,821.15
Code Sec. 846
CCH Reference - 2007FED ¶26,331.07
Code Sec. 1274
CCH Reference - 2007FED ¶31,310.05
CCH Reference - 2007FED ¶31,310.11
Code Sec. 7520
CCH Reference - 2007FED ¶42,785.40
CCH Reference - FINH ¶22,630.05
Code Sec. 7872
CCH Reference - FINH ¶18,950.05
Tax Research Consultant
CCH Reference - TRC ACCTNG: 36,162.05