July 7520 Unchanged at 1.2%

Rev. Rul. 2012-20; 2012-27 IRB 1

Full Text:

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 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 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 2012 for purposes of section 7872.

                       REV. RUL. 2012-20 TABLE 1
             Applicable Federal Rates (AFR) for July 2012
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                                     Period for Compounding
                         ______________________________________________

                         Annual    Semiannual  Quarterly   Monthly
 ______________________________________________________________________

                                  Short-term

      AFR                 .24%        .24%        .24%        .24%
      110% AFR            .26%        .26%        .26%        .26%
      120% AFR            .29%        .29%        .29%        .29%
      130% AFR            .31%        .31%        .31%        .31%

                                  Mid-term

      AFR                 .92%        .92%        .92%        .92%
      110% AFR           1.01%       1.01%       1.01%       1.01%
      120% AFR           1.10%       1.10%       1.10%       1.10%
      130% AFR           1.20%       1.20%       1.20%       1.20%
      150% AFR           1.38%       1.38%       1.38%       1.38%
      175% AFR           1.62%       1.61%       1.61%       1.60%

                                  Long-term

      AFR                2.30%       2.29%       2.28%       2.28%
      110% AFR           2.54%       2.52%       2.51%       2.51%
      120% AFR           2.77%       2.75%       2.74%       2.73%
      130% AFR           3.00%       2.98%       2.97%       2.96%

                       REV. RUL. 2012-20 TABLE 2
                      Adjusted AFR for July 2012
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                                     Period for Compounding
                         ______________________________________________

                         Annual   Semiannual   Quarterly   Monthly
 ______________________________________________________________________

      Short-term
      adjusted AFR        .27%        .27%        .27%        .27%

      Mid-term
      adjusted AFR       1.05%       1.05%       1.05%       1.05%

      Long-term
      adjusted AFR       3.02%       3.00%       2.99%       2.98%

                       REV. RUL. 2012-20 TABLE 3
                 Rates Under Section 382 for July 2012
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      Adjusted federal long-term rate for the current
      month                                                  3.02%

      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.)                       3.26%

                       REV. RUL. 2012-20 TABLE 4
     Appropriate Percentages Under Section 42(b)(1) for July 2012
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      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                              7.37%

      Appropriate percentage for the 30% present value
      low-income housing credit                              3.16%

                       REV. RUL. 2012-20 TABLE 5
                 Rate Under Section 7520 for July 2012
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      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      1.2%

                       REV. RUL. 2012-20 TABLE 6
                     Blended Annual Rate for 2012
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      Section 7872(e)(2) blended annual rate for 2012        .22%