Interest Rates for May 2012 Released
The IRS has released the short-term, mid-term, and long-term applicable interest rates for May 2012.
Applicable Federal Rates (AFR) for May 2012
Short-Term
|
Annual
|
Semiannual
|
Quarterly
|
Monthly
|
AFR
|
.28%
|
.28%
|
.28%
|
.28%
|
110% AFR
|
.31%
|
.31%
|
.31%
|
.31%
|
120% AFR
|
.34%
|
.34%
|
.34%
|
.34%
|
130% AFR
|
.36%
|
.36%
|
.36%
|
.36%
|
Mid-Term
|
Annual
|
Semiannual
|
Quarterly
|
Monthly
|
AFR
|
1.30%
|
1.30%
|
1.30%
|
1.30%
|
110% AFR
|
1.43%
|
1.43%
|
1.43%
|
1.43%
|
120% AFR
|
1.57%
|
1.56%
|
1.56%
|
1.55%
|
130% AFR
|
1.70%
|
1.69%
|
1.69%
|
1.68%
|
150% AFR
|
1.96%
|
1.95%
|
1.95%
|
1.94%
|
175% AFR
|
2.29%
|
2.28%
|
2.27%
|
2.27%
|
Long-Term
|
Annual
|
Semiannual
|
Quarterly
|
Monthly
|
AFR
|
2.89%
|
2.70%
|
2.69%
|
2.68%
|
110% AFR
|
3.18%
|
3.16%
|
3.15%
|
3.14%
|
120% AFR
|
3.47%
|
3.44%
|
3.43%
|
3.42%
|
130% AFR
|
3.76%
|
3.73%
|
3.73%
|
3.70%
|
Adjusted AFRs for May 2012
|
Annual
|
Semiannual
|
Quarterly
|
Monthly
|
Short-term adjusted AFR
|
.27%
|
.27%
|
.27%
|
.27%
|
Mid-term adjusted AFR
|
1.30%
|
1.30%
|
1.30%
|
1.30%
|
Long-term adjusted AFR
|
3.26%
|
3.23%
|
3.22%
|
3.21%
|
The Code Sec. 382 adjusted federal long-term rate is 3.26 percent; the 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) is 3.26 percent; the Code Sec. 42(b)(2) appropriate percentages for the 70 percent and 30 percent present values for the low-income housing credit are 7.48 percent and 3.21 percent, respectively. However, the appropriate percentage for non-federally subsidized new buildings placed in service after July 30, 2008, and before December 31, 2013, will be no less than 9 percent; and 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 1.6 percent.
©2012 CCH. All Rights Reserved.
Published: 4/25/2012