Tax Information 

Section 7520 Rates 

When determining the relative value of a life estate and a remainder interest, we are to use the Code Sec. 7520 rates.  These interest rates are published monthly with the AFR in Table 5. The amount is determined by using 120% of the midterm rate, rounded to the nearest two-tenths of a percent for the month of valuation. 

Table S, published in both Sec. 7520 and 642, provides the factors used to determine the allocation. Sec. 7520 gives the annuity factors, as well as the life estate and remainder factors.  The charts in the regulations for Sec. 642 only give the remainder factor. The life estate factor would be determined by subtracting the remainder factor from 1.00000.

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2012

1.4

1.4

1.4

1.4

1.6

1.2

1.2

1.0

1.0

2011

2.4

2.8

3.0

3.0

3.0

2.8

2.4

2.2

2.0

1.4

1.4

1.6

2010

3.0

3.4 

 3.2

 3.2

 3.4

 3.2

 2.8

2.6 

 2.4

2.0 

 2.0

1.8

2009

2.4

2.0

2.4

2.6

2.4

2.8

3.4

3.4

3.4

3.2

3.2

3.2

2008

4.4

4.2

4.0

3.4

3.2

3.8

4.2

4.2

4.2

3.8

3.6

3.4

2007

5.6

5.6

5.8

5.6

5.6

5.6

6.0

6.2

5.8

5.2

5.25

5.0

2006

5.4

5.2

5.4

5.6

5.8

6.0

6.0

6.2

6.0

5.8

5.6

5.8

2005

4.6

4.6

4.6

5.0

5.2

4.8

4.6

4.8

5.0

5.0

5.0

5.4

2004

4.2

4.2

4.0

3.8

3.8

4.6

5.0

4.8

4.6

4.4

4.2

4.2

2003

4.2

4.0

3.8

3.6

3.8

3.6

3.0

3.2

4.2

4.4

4.0

4.2

2002

5.4

5.6

5.4

5.6

6.0

5.8

5.6

5.2

4.6

4.2

3.6

4.0

2001

6.8

6.2

6.2

6.0

5.8

6.0

6.2

6.0

5.8

5.6

5.0

4.8

2000

7.4

8.0

8.2

8.0

7.8

8.0

8.0

7.6

7.6

7.4

7.2

7.0

1999

5.6

5.6

5.8

6.4

6.2

6.4

7.0

7.2

7.2

7.2

7.4

7.4

1998

7.2

6.8

6.8

6.8

6.8

7.0

6.8

6.8

6.6

6.2

5.4

5.4

1997

7.4

7.6

7.8

7.8

8.2

8.2

8.0

7.6

7.6

7.6

7.4

7.2

1996

6.8

6.8

6.6

7.0

7.6

8.0

8.2

8.2

8.0

8.0

8.0

7.6

1995

9.6

9.6

9.4

8.8

8.6

8.2

7.6

7.2

7.6

7.6

7.4

7.2

1994

6.4

6.4

6.4

7.0

7.8

8.4

8.2

8.4

8.4

8.6

9.0

9.4

1993

7.6

7.6

7.0

6.6

6.6

6.4

6.6

6.4

6.4

6.0

6.0

6.2

1992

8.2

7.6

8.0

8.4

8.6

8.4

8.2

7.8

7.2

7.0

6.8

7.4

1991

9.8

9.6

9.4

9.6

9.6

9.6

9.6

9.8

9.6

9.0

8.6

8.6

1990

9.6

9.8

10.2

10.6

10.6

11.0

10.6

10.4

10.2

10.6

10.6

10.2

1989

N/A

N/A

N/A

N/A

N/A

N/A

10.6

10.0

9.6

10.2

10.0

9.8

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