rr-21-08.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. 2021-8

This revenue ruling provides various prescribed rates for federal income tax
purposes for May 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
int erest for life or for a term of years, or a remainder or a reversionary interest for
purposes of section 7520.

REV. RUL. 2021-8 TABLE 1

2

Applicable Federal Rates (AFR) for May 2021

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.13% 0.13% 0.13% 0.13%
110% AFR 0.14% 0.14% 0.14% 0.14%
120% AFR 0.16% 0.16% 0.16% 0.16%
130% AFR 0.17% 0.17% 0.17% 0.17%

Mid-term

AFR 1.07% 1.07% 1.07% 1.07%
110% AFR 1.18% 1.18% 1.18% 1.18%
120% AFR 1.28% 1.28% 1.28% 1.28%
130% AFR 1.39% 1.39% 1.39% 1.39%
150% AFR 1.62% 1.61% 1.61% 1.60%
175% AFR 1.88% 1.87% 1.87% 1.86%

Long-term

AFR 2.16% 2.15% 2.14% 2.14%
110% AFR 2.38% 2.37% 2.36% 2.36%
120% AFR 2.60% 2.58% 2.57% 2.57%
130% AFR 2.82% 2.80% 2.79% 2.78%

REV. RUL. 2021-8 TABLE 2

3
Adjusted AFR for May 2021

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.10% 0.10% 0.10% 0.10%

Mid-term
adjusted AFR 0.81% 0.81% 0.81% 0.81%

Long-term
adjusted AFR 1.64% 1.63% 1.63% 1.62%

REV. RUL. 2021-8 TABLE 3

Rates Under Section 382 for May 2021

Adjusted federal long-term rate for the current month 1.64%

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.) 1.64%

REV. RUL. 2021-8 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for May 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 7.37%

Appropriate percentage for the 30% present value low-income
housing credit 3.16%

REV. RUL. 2021-8 TABLE 5

Rate Under Section 7520 for May 2021

4

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 1.2%