rr-02-2.pdf

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# Part I

Section 1274 .-- Determination of Issue Price in the Case of
Certain Debt Instruments Issued for Property

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807,
846, 1288, 7520, 7872.)

## Rev. Rul. 2002-2

This revenue ruling provides various prescribed rates for
federal income tax purposes for January 2002 (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. 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
deemed rate of return for transfers made during calendar year
2002 to pooled income funds described in § 642 (c) (5) that have
been in existence for less than 3 taxable years immediately
preceding the taxable year in which the transfer is made.

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REV. RUL. 2002-2 TABLE 1 Applicable Federal Rates (AFR) for January 2002 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

2.73%

2.71%

2.70%

2.69%

110% AFR

3.00%

2.98%

2.97%

2.96%

120% AFR

3.28%

3.25%

3.24%

3.23%

130% AFR

3.55%

3.52%

3.50%

3.49%

Mid-Term

AFR

4.49%

4.44%

4.42%

4.40%

110% AFR

4.94%

4.88%

4.85%

4.83%

120% AFR

5.40%

5.33%

5.29%

5.27%

130% AFR

5.85%

5.77%

5.73%

5.70%

150% AFR

6.77%

6.66%

6.61%

6.57%

175% AFR

7.92%

7.77%

7.70%

7.65%

Long-Term

AFR

5.46%

5.39%

5.35%

5.33%

110% AFR

6.02%

5.93%

5.89%

5.86%

120% AFR

6.57%

6.47%

6.42%

6.38%

130% AFR

7.13%

7.01%

6.95%

6.91%

REV. RUL. 2002-2 TABLE 2 Adjusted AFR for January 2002 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

2.47%

2.45%

2.44%

2.44%

Mid-term adjusted AFR

3.57%

3.54%

3.52%

3.51%

Long-term adjusted AFR

4.82%

4.76%

4.73%

4.71%

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Rates Under Section 382 for January 2002
Adjusted federal long-term rate for the current month
4.82%

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. )
4.82%

## REV. RUL. 2002-2 TABLE 4

Appropriate Percentages Under Section 42 (b) (2)
for January 2002

Appropriate percentage for the 70% present
value low-income housing credit
8.16%

Appropriate percentage for the 30% present
value low-income housing credit
3.50%

# REV. RUL. 2002-2 TABLE 5

Rate Under Section 7520 for January 2002

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
5.4%

# REV. RUL. 2002-2 TABLE 6

Rate Under Section 7520 for January 2002

Deemed rate of return for transfers during 2002 to
pooled income funds that have been in existence for
less than 3 taxable years
6.6%

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