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IRS Announces Applicable Federal Rates for February

JAN. 18, 2017

Rev. Rul. 2017-4; 2017-6 I.R.B. 776

DATED JAN. 18, 2017
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Citations: Rev. Rul. 2017-4; 2017-6 I.R.B. 776

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, 1288, 7520, 7872.)

This revenue ruling provides various prescribed rates for federal income tax purposes for February 2017 (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, 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. 2017-4 TABLE 1

 

            Applicable Federal Rates (AFR) for February 2017

 

 _____________________________________________________________________

 

 

                                    Period for Compounding

 

                         _____________________________________________

 

 

                         Annual   Semiannual   Quarterly    Monthly

 

 _____________________________________________________________________

 

 

                               Short-term

 

 

      AFR                1.04%       1.04%       1.04%       1.04%

 

      110% AFR           1.14%       1.14%       1.14%       1.14%

 

      120% AFR           1.25%       1.25%       1.25%       1.25%

 

      130% AFR           1.35%       1.35%       1.35%       1.35%

 

 

                                Mid-term

 

 

      AFR                2.10%       2.09%       2.08%       2.08%

 

      110% AFR           2.31%       2.30%       2.29%       2.29%

 

      120% AFR           2.53%       2.51%       2.50%       2.50%

 

      130% AFR           2.74%       2.72%       2.71%       2.70%

 

      150% AFR           3.16%       3.14%       3.13%       3.12%

 

      175% AFR           3.69%       3.66%       3.64%       3.63%

 

 

                               Long-term

 

 

      AFR                2.81%       2.79%       2.78%       2.77%

 

      110% AFR           3.09%       3.07%       3.06%       3.05%

 

      120% AFR           3.38%       3.35%       3.34%       3.33%

 

      130% AFR           3.66%       3.63%       3.61%       3.60%

 

 

                        REV. RUL. 2017-4 TABLE 2

 

                     Adjusted AFR for February 2017

 

 _____________________________________________________________________

 

 

                                    Period for Compounding

 

                         _____________________________________________

 

 

                         Annual   Semiannual   Quarterly    Monthly

 

 _____________________________________________________________________

 

 

      Short-term

 

      adjusted AFR        .77%        .77%        .77%        .77%

 

 

      Mid-term

 

      adjusted AFR       1.56%       1.55%       1.55%       1.55%

 

 

      Long-term

 

      adjusted AFR       2.09%       2.08%       2.07%       2.07%

 

 

                        REV. RUL. 2017-4 TABLE 3

 

               Rates Under Section 382 for February 2017

 

 _____________________________________________________________________

 

 

      Adjusted federal long-term rate for

 

      the current month                                      2.09%

 

 

      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.)                                           2.09%

 

 

                        REV. RUL. 2017-4 TABLE 4

 

    Appropriate Percentages Under Section 42(b)(1) for February 2017

 

 ______________________________________________________________________

 

 

 Note: Under section 42(b)(2),

 

 the applicable percentage for

 

 non-federally subsidized new buildings placed in service after July

 

 30, 2008, shall not be less than 9%.

 

 _____________________________________________________________________

 

 

      Appropriate percentage for the 70% present value

 

      low-income housing credit                              7.56%

 

 

      Appropriate percentage for the 30% present value

 

      low-income housing credit                              3.24%

 

 

                        REV. RUL. 2017-4 TABLE 5

 

               Rate Under Section 7520 for February 2017

 

 _____________________________________________________________________

 

 

      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      2.6%
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