rr-21-07.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, 467, 468, 482, 483, 1288, 7520, 7872.)

Rev. Rul. 2021-7

This revenue ruling provides various prescribed rates for federal income tax
purposes for April 2021 (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.

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REV. RUL. 2021-7 TABLE 1

Applicable Federal Rates (AFR) for April 2021

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.12% 0.12% 0.12% 0.12%
110% AFR 0.13% 0.13% 0.13% 0.13%
120% AFR 0.14% 0.14% 0.14% 0.14%
130% AFR 0.16% 0.16% 0.16% 0.16%

Mid-term

AFR 0.89% 0.89% 0.89% 0.89%
110% AFR 0.98% 0.98% 0.98% 0.98%
120% AFR 1.07% 1.07% 1.07% 1.07%
130% AFR 1.16% 1.16% 1.16% 1.16%
150% AFR 1.34% 1.34% 1.34% 1.34%
175% AFR 1.57% 1.56% 1.56% 1.55%

Long-term

AFR 1.98% 1.97% 1.97% 1.96%
110% AFR 2.18% 2.17% 2.16% 2.16%
120% AFR 2.37% 2.36% 2.35% 2.35%
130% AFR 2.58% 2.56% 2.55% 2.55%

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REV. RUL. 2021-7 TABLE 2

Adjusted AFR for April 2021

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.09% 0.09% 0.09% 0.09%

Mid-term
adjusted AFR 0.68% 0.68% 0.68% 0.68%

Long-term
adjusted AFR 1.51% 1.50% 1.50% 1.50%

REV. RUL. 2021-7 TABLE 3

Rates Under Section 382 for April 2021

Adjusted federal long-term rate for the current month 1.51%

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.) 1.51%

REV. RUL. 2021-7 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for April 2021
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 7.33%

Appropriate percentage for the 30% present value low-income
housing credit 3.14%

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REV. RUL. 2021-7 TABLE 5

Rate Under Section 7520 for April 2021

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 1.00%