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IRS Announces Applicable Federal Rates for September

AUG. 17, 2012

Rev. Rul. 2012-24; 2012-36 I.R.B. 329

DATED AUG. 17, 2012
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Citations: Rev. Rul. 2012-24; 2012-36 I.R.B. 329

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 September 2012 (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. 2012-24 TABLE 1

 

           Applicable Federal Rates (AFR) for September 2012

 

 ______________________________________________________________________

 

 

                                   Period for Compounding

 

                         ______________________________________________

 

 

                         Annual    Semiannual  Quarterly    Monthly

 

 ______________________________________________________________________

 

 

                              Short-term

 

 

      AFR                 .21%        .21%        .21%        .21%

 

      110% AFR            .23%        .23%        .23%        .23%

 

      120% AFR            .25%        .25%        .25%        .25%

 

      130% AFR            .27%        .27%        .27%        .27%

 

 

                               Mid-term

 

 

      AFR                 .84%        .84%        .84%        .84%

 

      110% AFR            .92%        .92%        .92%        .92%

 

      120% AFR           1.01%       1.01%       1.01%       1.01%

 

      130% AFR           1.09%       1.09%       1.09%       1.09%

 

      150% AFR           1.26%       1.26%       1.26%       1.26%

 

      175% AFR           1.48%       1.47%       1.47%       1.47%

 

 

                               Long-term

 

 

      AFR                2.18%       2.17%       2.16%       2.16%

 

      110% AFR           2.40%       2.39%       2.38%       2.38%

 

      120% AFR           2.62%       2.60%       2.59%       2.59%

 

      130% AFR           2.84%       2.82%       2.81%       2.80%

 

 

                       REV. RUL. 2012-24 TABLE 2

 

                    Adjusted AFR for September 2012

 

 ______________________________________________________________________

 

 

                                   Period for Compounding

 

                         ______________________________________________

 

 

                         Annual    Semiannual  Quarterly    Monthly

 

 ______________________________________________________________________

 

 

      Short-term

 

      adjusted AFR        .23%        .23%        .23%        .23%

 

 

      Mid-term

 

      adjusted AFR        .95%        .95%        .95%        .95%

 

 

      Long-term

 

      adjusted AFR       2.80%       2.78%       2.77%       2.76%

 

 

                       REV. RUL. 2012-24 TABLE 3

 

              Rates Under Section 382 for September 2012

 

 ______________________________________________________________________

 

 

      Adjusted federal long-term rate for the current

 

      month                                                  2.80%

 

 

      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.)                       3.02%

 

 

                       REV. RUL. 2012-24 TABLE 4

 

   Appropriate Percentages Under Section 42(b)(1) for September 2012

 

 ______________________________________________________________________

 

 

      Note: Under Section 42(b)(2), the applicable percentage for

 

      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                              7.35%

 

 

      Appropriate percentage for the 30% present value

 

      low-income housing credit                              3.15%

 

 

                       REV. RUL. 2012-24 TABLE 5

 

              Rate Under Section 7520 for September 2012

 

 ______________________________________________________________________

 

 

      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         1.0%
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