rr-17-24.pdf

us-irs-revenue-rulings-rr-17-24rr-17-24.pdfGuidance

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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.)

Rev. Rul. 2017-24

This revenue ruling provides various prescribed rates for federal
income tax purposes for December 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%. 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 2018 interest rate
for purposes of sections 846 and 807.

2

REV. RUL. 2017-24 TABLE 1

Applicable Federal Rates (AFR) for December 2017

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 1.52% 1.51% 1.51% 1.51%
110% AFR 1.67% 1.66% 1.66% 1.65%
120% AFR 1.82% 1.81% 1.81% 1.80%
130% AFR 1.97% 1.96% 1.96% 1.95%

Mid-term

AFR 2.11% 2.10% 2.09% 2.09%
110% AFR 2.32% 2.31% 2.30% 2.30%
120% AFR 2.54% 2.52% 2.51% 2.51%
130% AFR 2.75% 2.73% 2.72% 2.71%
150% AFR 3.17% 3.15% 3.14% 3.13%
175% AFR 3.71% 3.68% 3.66% 3.65%

Long-term

AFR 2.64% 2.62% 2.61% 2.61%
110% AFR 2.90% 2.88% 2.87% 2.86%
120% AFR 3.16% 3.14% 3.13% 3.12%
130% AFR 3.44% 3.41% 3.40% 3.39%

3

REV. RUL. 2017-24 TABLE 2

Adjusted AFR for December 2017

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 1.12% 1.12% 1.12% 1.12%

Mid-term
adjusted AFR 1.57% 1.56% 1.56% 1.55%

Long-term
adjusted AFR 1.96% 1.95% 1.95% 1.94%

REV. RUL. 2017-24 TABLE 3

Rates Under Section 382 for December 2017

Adjusted federal long-term rate for the current month 1.96%

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.) 1.96%

4

REV. RUL. 2017-24 TABLE 4

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

Appropriate percentage for the 70% present value low-income
housing credit 7.55%

Appropriate percentage for the 30% present value low-income
housing credit 3.23%

REV. RUL. 2017-24 TABLE 5

Rate Under Section 7520 for December 2017

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 2.6%

REV. RUL. 2017-24 TABLE 6

Rates Under Sections 846 and 807

Applicable rate of interest for 2018 for purposes of sections 846
and 807 1.66%

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