IRS Announces Applicable Federal Rates for March
Rev. Rul. 2017-7; 2017-10 I.R.B. 1007
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2017-2378
- Tax Analysts Electronic Citation2017 TNT 33-15
Section 1274.-- Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483, 642, 1288, 7520, 7872.)
This revenue ruling provides various prescribed rates for federal income tax purposes for March 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. 2017-07 TABLE 1
Applicable Federal Rates (AFR) for March 2017
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Period for Compounding
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Annual Semiannual Quarterly Monthly
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Short-term
AFR 1.01% 1.01% 1.01% 1.01%
110% AFR 1.11% 1.11% 1.11% 1.11%
120% AFR 1.21% 1.21% 1.21% 1.21%
130% AFR 1.31% 1.31% 1.31% 1.31%
Mid-term
AFR 2.05% 2.04% 2.03% 2.03%
110% AFR 2.25% 2.24% 2.23% 2.23%
120% AFR 2.47% 2.45% 2.44% 2.44%
130% AFR 2.67% 2.65% 2.64% 2.64%
150% AFR 3.08% 3.06% 3.05% 3.04%
175% AFR 3.60% 3.57% 3.55% 3.54%
Long-term
AFR 2.78% 2.76% 2.75% 2.74%
110% AFR 3.06% 3.04% 3.03% 3.02%
120% AFR 3.34% 3.31% 3.30% 3.29%
130% AFR 3.62% 3.59% 3.57% 3.56%
REV. RUL. 2017-07 TABLE 2
Adjusted AFR for March 2017
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Period for Compounding
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Annual Semiannual Quarterly Monthly
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Short-term
adjusted AFR .75% .75% .75% .75%
Mid-term
adjusted AFR 1.53% 1.52% 1.52% 1.52%
Long-term
adjusted AFR 2.06% 2.05% 2.04% 2.04%
REV. RUL. 2017-07 TABLE 3
Rates Under Section 382 for March 2017
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Adjusted federal long-term rate
for the current month 2.06%
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. 2017-07 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for March 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. 2017-07 TABLE 5
Rate Under Section 7520 for March 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 2.4%
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2017-2378
- Tax Analysts Electronic Citation2017 TNT 33-15