Section 1274Issued for PropertyAlso Sections 42 280G 382 467 468 482 483 1288 7520 7872Rev Rul 202116This revenue ruling provides various prescribed rates for federal income tax purposes for Septem ID: 883205
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1 Section 1274. -- Determination of Issue
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, 1288, 7520, 7872.) Rev. Rul. 20 2 1 - 1 6 This revenue ruling provides various prescribed rates for federal income tax purposes for S eptember 202 1 (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 se c t i on 1 274(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 r a te a nd 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. Howeve r , un d e r section 42(b)(2), the applicable percentage for non - federally subsidized new buildings placed in service after July 30, 2008, shall
2 not be less than 9%. Finally, Table 5
not be less than 9%. Finally, Table 5 contains the federal rate for determining the present value of an annuity, a n i nt e r est f or life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520. 2 REV. RUL. 20 2 1 - 1 6 TABLE 1 Applicable Fe deral Rates (AFR) for September 20 2 1 Period for Compounding Ann u al Semia nnua l Quar te rl y Monthly Short - term AFR 0 . 1 7 % 0 . 1 7 % 0 . 1 7 % 0 . 1 7 % 110% AFR 0 . 19 % 0 . 19 % 0 . 19 % 0 . 19 % 120% AFR 0 . 2 0 % 0 . 2 0 % 0 . 2 0 % 0 . 2 0 % 13 0% AFR 0. 2 2 % 0. 2 2 % 0. 2 2 % 0. 2 2 % Mid - term AFR 0 .86 % 0.86 % 0.86 % 0.86 % 110% AFR 0.95 % 0.95 % 0.95 %
3 0.95 % 120% AFR
0.95 % 120% AFR 1. 03 % 1. 03 % 1. 03 % 1. 03 % 130% AFR 1. 12 % 1. 12 % 1. 12 % 1. 12 % 15 0% AFR 1 . 29 % 1. 29 % 1. 29 % 1. 29 % 175% AFR 1 . 52 % 1. 51 % 1. 51 % 1. 51 % Long - term AFR 1. 73 % 1. 72 % 1. 72 % 1. 71 % 110% AFR 1.90 % 1.89 % 1.89 % 1. 88 % 1 2 0% A FR 2 . 0 7 % 2. 0 6 % 2. 0 5 % 2. 0 5 % 130% AFR 2. 2 5 % 2. 2 4 % 2. 2 3 % 2. 2 3 % 3 REV. RUL. 20 2 1 - 1 6 TABLE 2 Adjusted AFR for September 202 1 Period for Compounding Annual Semi annual Quarterly Monthly Short - term adjusted AFR 0 .1 3 % 0. 1 3 % 0. 1 3 % 0 . 1 3 % Mid - term adjusted AFR 0. 65 % 0. 65 % 0. 65 % 0. 65 % Long - term adjusted AFR 1 . 31 % 1 . 31 % 1 . 31 % 1 . 31 % REV. RUL . 20 2
4 1 - 1 6 T ABLE 3 Rates Under Secti
1 - 1 6 T ABLE 3 Rates Under Section 382 for Sept ember 202 1 Adjusted f ed eral l on g - te rm rate for the current month 1 . 31 % Long - term tax - exempt rate for ownership changes during the current month (the highest of the adjusted federal long - term rates for the current mo nth and the prior two months.) 1 . 5 7 % REV. RUL. 2 02 1 - 1 6 T ABL E 4 A ppropriat e Pe rcen tages Under Section 42(b)(1) f o r September 202 1 Note: Under section 42(b)(2), the applicable percentage for non - federally subsidized new buildings placed in service after Ju ly 30, 2008, shall not be less than 9%. Appropriate p e rcenta ge for t he 70% pre sent value low - income housing credit 7. 3 0 % Appropriate percentage for the 30% present value low - income housing credit 3. 1 3 % 4 REV. RUL . 20 2 1 - 1 6 TABLE 5 R ate Under Section 7520 for September 202 1 Applicable fede ral rate for d etermining t he pre sent v alue of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 1 .