rr-10-24.pdf

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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.)

# Rev. Rul. 2010-24

This revenue ruling provides various prescribed rates for federal
income tax purposes for October 2010 (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.

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# REV. RUL. 2010-24 TABLE 1 Applicable Federal Rates (AFR) for October 2010

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.41%

.41%

.41%

.41%

110% AFR

.45%

.45%

.45%

.45%

120% AFR

.49%

.49%

.49%

.49%

130% AFR

.53%

.53%

.53%

53%

Mid-term

AFR

1.73%

1.72%

1.72%

1.71%

110% AFR

1.90%

1.89%

1.89%

1.88%

120% AFR

2.07%

2.06%

2.05%

2.05%

130% AFR

2.25%

2.24%

2.23%

2.23%

150% AFR

2.60%

2.58%

2.57%

2.57%

175% AFR

3.03%

3.01%

3.00%

2.99%

Long-term

AFR

3.32%

3.29%

3.28%

3.27%

110% AFR

3.65%

3.62%

3.60%

3.59%

120% AFR

3.99%

3.95%

3.93%

3.92%

130% AFR

4.33%

4.28%

4.26%

4.24%

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REV. RUL. 2010-24 TABLE 2 Adjusted AFR for October 2010

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

.44%

.44%

.44%

.44%

Mid-term adjusted AFR

1.30%

1.30%

1.30%

1.30%

Long-term adjusted AFR

3.45%

3.42%

3.41%

3.40%

REV. RUL. 2010-24 TABLE 3
Rates Under Section 382 for October 2010

Adjusted federal long-term rate for the current month

3.45%

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.)

3.98%

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# REV. RUL. 2010-24 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for October 2010

Note: 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%.

Appropriate percentage for the 70% present value low-income
housing credit
7.58%

Appropriate percentage for the 30% present value low-income
housing credit
3.25%

# REV. RUL. 2010-24 TABLE 5 Rate Under Section 7520 for October 2010

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
2.0%