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 2009-16 indicates the applicable federal rate under section 7520 for June 2009 is 2.8%; up 0.4% from the May rate of 2.4% and up 0.2% from the April rate of 2.6%.
Rev. Rul. 2009-16; 2009-23 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 June 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%. Finally,
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.
REV. RUL. 2009-16 TABLE 1 Applicable Federal Rates (AFR) for June 2009 Period for Compounding _______________________________________________ Annual Semiannual Quarterly Monthly _______________________________________________ Short-term AFR .75% .75% .75% .75% 110% AFR .83% .83% .83% .83% 120% AFR .90% .90% .90% .90% 130% AFR .98% .98% .98% .98% Mid-term AFR 2.25% 2.24% 2.23% 2.23% 110% AFR 2.48% 2.46% 2.45% 2.45% 120% AFR 2.71% 2.69% 2.68% 2.68% 130% AFR 2.93% 2.91% 2.90% 2.89% 150% AFR 3.39% 3.36% 3.35% 3.34% 175% AFR 3.96% 3.92% 3.90% 3.89% Long-term AFR 3.88% 3.84% 3.82% 3.81% 110% AFR 4.26% 4.22% 4.20% 4.18% 120% AFR 4.66% 4.61% 4.58% 4.57% 130% AFR 5.05% 4.99% 4.96% 4.94% _________________________________________________________________ REV. RUL. 2009-16 TABLE 2 Adjusted AFR for June 2009 Period for Compounding __________________________________________ Annual Semiannual Quarterly Monthly __________________________________________ Short-term adjusted AFR .75% .75% .75% .75% Mid-term adjusted AFR 2.05% 2.04% 2.03% 2.03% Long-term adjusted AFR 4.28% 4.24% 4.22% 4.20% _________________________________________________________________ REV. RUL. 2009-16 TABLE 3 Rates Under Section 382 for June 2009 Adjusted federal long-term rate for the current month 4.28% 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.) 4.61% REV. RUL. 2009-16 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for June 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 7.71% Appropriate percentage for the 30% present value low-income housing credit 3.30% REV. RUL. 2009-16 TABLE 5 Rate Under Section 7520 for June 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 2.8%
