rr-20-14.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. 2020-14

This revenue ruling provides various prescribed rates for federal income tax
purposes for July 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%. 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 2020 for purposes of
section 7872.

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# Applicable Federal Rates (AFR) for July 2020

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

0.18%

0.18%

0.18%

0.18%

110% AFR

0.20%

0.20%

0.20%

0.20%

120% AFR

0.22%

0.22%

0.22%

0.22%

130% AFR

0.23%

0.23%

0.23%

0.23%

Mid-term

AFR

0.45%

0.45%

0.45%

0.45%

110% AFR

0.50%

0.50%

0.50%

0.50%

120% AFR

0.54%

0.54%

0.54%

0.54%

130% AFR

0.59%

0.59%

0.59%

0.59%

150% AFR

0.68%

0.68%

0.68%

0.68%

175% AFR

0.79%

0.79%

0.79%

0.79%

Long-term

AFR

1.17%

1.17%

1.17%

1.17%

110% AFR

1.29%

1.29%

1.29%

1.29%

120% AFR

1.40%

1.40%

1.40%

1.40%

130% AFR

1.53%

1.52%

1.52%

1.52%

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Adjusted AFR for July 2020

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

0.14%

0.14%

0.14%

0.14%

Mid-term adjusted AFR

0.34%

0.34%

0.34%

0.34%

Long-term adjusted AFR

0.89%

0.89%

0.89%

0.89%

REV. RUL. 2020-14 TABLE 3
Rates Under Section 382 for July 2020

Adjusted federal long-term rate for the current month
.89%

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.)
.89%

REV. RUL. 2020-14 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for July 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. 2020-14 TABLE 5 Rate Under Section 7520 for July 2020

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

7.18%

Appropriate percentage for the 30% present value low-income

housing credit

3.08%

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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
.6%

REV. RUL. 2020-14 TABLE 6
Blended Annual Rate for 2020

Section 7872(e)(2) blended annual rate for 2020
.89%