rr-00-38.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. 2000-38

This revenue ruling provides various prescribed rates for
federal income tax purposes for August 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 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.

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# REV. RUL. 2000-38 TABLE 1 Applicable Federal Rates (AFR) for August 2000 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

6.37%

6.27%

6.22%

6.19%

110% AFR

7.02%

6.90%

6.84%

6.80%

120% AFR

7.66%

7.52%

7.45%

7.40%

130% AFR

8.32%

8.15%

8.07%

8.01%

Mid-Term

AFR

6.33%

6.23%

6.18%

6.15%

110% AFR

6.97%

6.85%

6.79%

6.75%

120% AFR

7.62%

7.48%

7.41%

7.37%

130% AFR

8.26%

8.10%

8.02%

7.97%

150% AFR

9.57%

9.35%

9.24%

9.17%

175% AFR

11.20%

10.90%

10.76%

10.66%

Long-Term

AFR

6.22%

6.13%

6.08%

6.05%

110% AFR

6.85%

6.74%

6.68%

6.65%

120% AFR

7.50%

7.36%

7.29%

7.25%

130% AFR

8.13%

7.97%

7.89%

7.84%

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REV. RUL. 2000-38 TABLE 2 Adjusted AFR for August 2000 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

4.63%

4.58%

4.55%

4.54%

Mid-term adjusted AFR

4.84%

4.78%

4.75%

4.73%

Long-term adjusted AFR

5.53%

5.46%

5.42%

5.40%

REV. RUL. 2000-38 TABLE 3

Rates Under Section 382 for August 2000
Adjusted federal long-term rate for the current month
5.53%

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. )

5.79%

## REV. RUL. 2000-38 TABLE 4

Appropriate Percentages Under Section 42 (b) (2)
for August 2000

Appropriate percentage for the 70% present

value low-income housing credit

8.47%

Appropriate percentage for the 30% present

value low-income housing credit

3.63%

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REV. RUL. 2000-38 TABLE 5
Rate Under Section 7520 for August 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
7.6%