RR-12-28.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. 2012-28

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

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# REV. RUL. 2012-28 TABLE 1 Applicable Federal Rates (AFR) for October 2012

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.23%

.23%

.23%

.23%

110% AFR

.25%

.25%

.25%

.25%

120% AFR

.28%

.28%

.28%

.28%

130% AFR

.30%

.30%

.30%

.30%

Mid-term

AFR

93%

.93%

.93%

93%

110% AFR

1.02%

1.02%

1.02%

1.02%

120% AFR

1.12%

1.12%

1.12%

1.12%

130% AFR

1.21%

1.21%

1.21%

1.21%

150% AFR

1.40%

1.40%

1.40%

1.40%

175% AFR

1.64%

1.63%

1.63%

1.62%

Long-term

AFR

2.36%

2.35%

2.34%

2.34%

110% AFR

2.61%

2.59%

2.58%

2.58%

120% AFR

2.84%

2.82%

2.81%

2.80%

130% AFR

3.08%

3.06%

3.05%

3.04%

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REV. RUL. 2012-28 TABLE 2 Adjusted AFR for October 2012

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

.23%

.23%

.23%

.23%

Mid-term adjusted AFR

1.04%

1.04%

1.04%

1.04%

Long-term adjusted AFR

2.87%

2.85%

2.84%

2.83%

REV. RUL. 2012-28 TABLE 3
Rates Under Section 382 for October 2012

Adjusted federal long-term rate for the current month
2.87%

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.)

3.01%

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# REV. RUL. 2012-28 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for October 2012

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%.

REV. RUL. 2012-28 TABLE 5 Rate Under Section 7520 for October 2012

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

7.38%

Appropriate percentage for the 30% present value low-income

housing credit

3.16%

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%