rr-16-17.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. 2016-17

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 2016 (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%. 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. Finally, Table 6 contains the blended annual
rate for 2016 for purposes of section 7872.

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# REV. RUL. 2016-17 TABLE 1 Applicable Federal Rates (AFR) for July 2016

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.71%

.71%

.71%

.71%

110% AFR

.78%

.78%

.78%

.78%

120% AFR

.85%

.85%

.85%

.85%

130% AFR

92%

92%

92%

92%

Mid-term

AFR

1.43%

1.42%

1.42%

1.42%

110% AFR

1.57%

1.56%

1.56%

1.55%

120% AFR

1.71%

1.70%

1.70%

1.69%

130% AFR

1.86%

1.85%

1.85%

1.84%

150% AFR

2.14%

2.13%

2.12%

2.12%

175% AFR

2.51%

2.49%

2.48%

2.48%

Long-term

AFR

2.18%

2.17%

2.16%

2.16%

110% AFR

2.40%

2.39%

2.38%

2.38%

120% AFR

2.62%

2.60%

2.59%

2.59%

130% AFR

2.84%

2.82%

2.81%

2.80%

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REV. RUL. 2016-17 TABLE 2 Adjusted AFR for July 2016

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

.65%

.65%

.65%

.65%

Mid-term adjusted AFR

1.16%

1.16%

1.16%

1.16%

Long-term adjusted AFR

2.08%

2.07%

2.06%

2.06%

REV. RUL. 2016-17 TABLE 3
Rates Under Section 382 for July 2016

Adjusted federal long-term rate for the current month
2.08%

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.)

2.24%

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## REV. RUL. 2016-17 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for July 2016
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. 2016-17 TABLE 5 Rate Under Section 7520 for July 2016

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

7.41%

Appropriate percentage for the 30% present value low-income

housing credit

3.18%

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
1.8%

REV. RUL. 2016-17 TABLE 6
Blended Annual Rate for 2016

Section 7872(e)(2) blended annual rate for 2016
.73%