rr-20-09.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. 2020-9

This revenue ruling provides various prescribed rates for federal income tax
purposes for April 2020 (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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Applicable Federal Rates (AFR) for April 2020

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

0.91%

0.91%

0.91%

0.91%

110% AFR

1.00%

1.00%

1.00%

1.00%

120% AFR

1.09%

1.09%

1.09%

1.09%

130% AFR

1.18%

1.18%

1.18%

1.18%

Mid-term

AFR

0.99%

0.99%

0.99%

0.99%

110% AFR

1.09%

1.09%

1.09%

1.09%

120% AFR

1.19%

1.19%

1.19%

1.19%

130% AFR

1.29%

1.29%

1.29%

1.29%

150% AFR

1.50%

1.49%

1.49%

1.49%

175% AFR

1.74%

1.73%

1.73%

1.72%

Long-term

AFR

1.44%

1.43%

1.43%

1.43%

110% AFR

1.58%

1.57%

1.57%

1.56%

120% AFR

1.73%

1.72%

1.72%

1.71%

130% AFR

1.87%

1.86%

1.86%

1.85%

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REV. RUL. 2020-9 TABLE 3 Rates Under Section 382 for April 2020

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

0.69%

0.69%

0.69%

0.69%

Mid-term adjusted AFR

0.75%

0.75%

0.75%

0.75%

Long-term adjusted AFR

1.09%

1.09%

1.09%

1.09%

Adjusted federal long-term rate for the current month
1.09%

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.)
1.63%

## REV. RUL. 2020-9 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for April 2020
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. 2020-9 TABLE 5 Rate Under Section 7520 for April 2020

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

7.28%

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

3.12%

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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%