To be used to value certain charitable interests in trusts. Pursuant to Internal Revenue Code 7520, the interest rate for a particular month is the rate that is 120 percent of the applicable federal midterm rate (compounded annually) for the month in which the valuation date falls. That rate is then rounded to the nearest two-tenths of one percent. For example, the rate that is 120 percent of the applicable federal rate (compounded annually) for January 2018 is 2.62 percent. That rate is then rounded to the nearest two-tenths of one percent or 2.6 percent for purposes of IRC 7520.
|Valuation Month||120% of Applicable Federal Midterm Rate||Section 7520 Interest Rate||Revenue Ruling|
|January 2019||3.47||3.4||Rev. Rul. 2019-3|
|February 2019||3.15||3.2||Rev. Rul. 2019-4|
|March 2019||3.10||3.2||Rev. Rul. 2019-7|
|April 2019||3.06||3.0||Rev. Rul. 2019-8|
|May 2019||2.85||2.8||Rev. Rul. 2019-12|