For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2009-20 indicates the applicable federal rate under section 7520 for July 2009 is 3.4%; up 0.6% from the June rate of 2.8% and up a full 1.0% from the May rate of 2.4%.
Rev. Rul. 2009-20; 2009-28 IRB 1
Full Text:
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.)
This revenue ruling provides various prescribed rates for
federal income tax purposes for July 2009 (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)(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 blended annual rate for 2009 for purposes of section 7872.
REV. RUL. 2009-20 TABLE 1 Applicable Federal Rates (AFR) for July 2009 Period for Compounding _______________________________________________ Annual Semiannual Quarterly Monthly _______________________________________________ Short-term AFR .82% .82% .82% .82% 110% AFR .90% .90% .90% .90% 120% AFR .98% .98% .98% .98% 130% AFR 1.07% 1.07% 1.07% 1.07% Mid-term AFR 2.76% 2.74% 2.73% 2.72% 110% AFR 3.03% 3.01% 3.00% 2.99% 120% AFR 3.32% 3.29% 3.28% 3.27% 130% AFR 3.59% 3.56% 3.54% 3.53% 150% AFR 4.15% 4.11% 4.09% 4.08% 175% AFR 4.86% 4.80% 4.77% 4.75% Long-term AFR 4.36% 4.31% 4.29% 4.27% 110% AFR 4.80% 4.74% 4.71% 4.69% 120% AFR 5.24% 5.17% 5.14% 5.12% 130% AFR 5.68% 5.60% 5.56% 5.54% REV. RUL. 2009-20 TABLE 2 Adjusted AFR for July 2009 Period for Compounding ______________________________________________ Annual Semiannual Quarterly Monthly ______________________________________________ Short-term adjusted AFR .84% .84% .84% .84% Mid-term adjusted AFR 2.22% 2.21% 2.20% 2.20% Long-term adjusted AFR 4.33% 4.28% 4.26% 4.24% REV. RUL. 2009-20 TABLE 3 Rates Under Section 382 for July 2009 Adjusted federal long-term rate for the current month 4.33% 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.) 4.58% REV. RUL. 2009-20 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for July 2009 Note: 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%. Appropriate percentage for the 70% present value low-income housing credit 7.82% Appropriate percentage for the 30% present value low-income housing credit 3.35% REV. RUL. 2009-20 TABLE 5 Rate Under Section 7520 for July 2009 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 3.4% REV. RUL. 2009-20 TABLE 6 Blended Annual Rate for 2009 Section 7872(e)(2) blended annual rate for 2009 0.82%
