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IRS Announces Applicable Federal Rates for March

FEB. 17, 2017

Rev. Rul. 2017-7; 2017-10 I.R.B. 1007

DATED FEB. 17, 2017
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Citations: Rev. Rul. 2017-7; 2017-10 I.R.B. 1007

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

 

 ______________________________________________________________________

 

 

                                     Period for Compounding

 

                      _________________________________________________

 

 

                         Annual    Semiannual       Quarterly   Monthly

 

 ______________________________________________________________________

 

 

                               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

 

 ______________________________________________________________________

 

 

                                     Period for Compounding

 

                        _______________________________________________

 

 

                         Annual    Semiannual  Quarterly    Monthly

 

 ______________________________________________________________________

 

 

 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

 

 ______________________________________________________________________

 

 

 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%
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