rr-17-12.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

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.)

Rev. Rul. 2017-12

This revenue ruling provides various prescribed rates for federal
income tax purposes for June 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.

<!-- PageBreak -->

# REV. RUL. 2017-12 TABLE 1 Applicable Federal Rates (AFR) for June 2017

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

1.18%

1.18%

1.18%

1.18%

110% AFR

1.30%

1.30%

1.30%

1.30%

120% AFR

1.43%

1.42%

1.42%

1.42%

130% AFR

1.54%

1.53%

1.53%

1.53%

Mid-term

AFR

1.96%

1.95%

1.95%

1.94%

110% AFR

2.16%

2.15%

2.14%

2.14%

120% AFR

2.35%

2.34%

2.33%

2.33%

130% AFR

2.56%

2.54%

2.53%

2.53%

150% AFR

2.95%

2.93%

2.92%

2.91%

175% AFR

3.44%

3.41%

3.40%

3.39%

Long-term

AFR

2.68%

2.66%

2.65%

2.65%

110% AFR

2.95%

2.93%

2.92%

2.91%

120% AFR

3.22%

3.19%

3.18%

3.17%

130% AFR

3.49%

3.46%

3.45%

3.44%

<!-- PageBreak -->

REV. RUL. 2017-12 TABLE 2 Adjusted AFR for June 2017

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

.88%

.88%

.88%

.88%

Mid-term adjusted AFR

1.46%

1.45%

1.45%

1.45%

Long-term adjusted AFR

1.99%

1.98%

1.98%

1.97%

REV. RUL. 2017-12 TABLE 3
Rates Under Section 382 for June 2017

Adjusted federal long-term rate for the current month
1.99%

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%

<!-- PageBreak -->

# REV. RUL. 2017-12 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for June 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%.

REV. RUL. 2017-12 TABLE 5 Rate Under Section 7520 for June 2017

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

7.53%

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

3.23%

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%