Applicable Federal Rates (AFR) for January 2012

Applicable Federal Rates (AFR) for January 2012

This revenue ruling provides various prescribed rates for federal
income tax purposes for January 2012 (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 longterm
rate and the long-term tax-exempt rate described in section 382(f).
Table 4 contains the appropriate percentages for determining the lowincome
housing credit described in section 42(b)(1) for buildings placed in
service during the current month. However, under section 42(b)(2), the
applicable percentage for non-federally subsidized new buildings placed in
service after July 30, 2008, and before December 31, 2013, shall not be
less than 9%. 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 2012 to pooled income funds described in section
642(c)(5) that have been in existence for less than 3 taxable years
immediately preceding the taxable year in which the transfer was made.