rr-21-05.pdf

us-irs-revenue-rulings-rr-21-05rr-21-05.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, 7872.)

Rev. Rul. 2021-5

This revenue ruling provides various prescribed rates for federal income tax
purposes for March 2021 (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
int erest for life or for a term of years, or a remainder or a reversionary interest for
purposes of section 7520.

REV. RUL. 2021-5 TABLE 1

2

Applicable Federal Rates (AFR) for March 2021

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.11% 0.11% 0.11% 0.11%
110% AFR 0.12% 0.12% 0.12% 0.12%
120% AFR 0.13% 0.13% 0.13% 0.13%
130% AFR 0.14% 0.14% 0.14% 0.14%

Mid-term

AFR 0.62% 0.62% 0.62% 0.62%
110% AFR 0.68% 0.68% 0.68% 0.68%
120% AFR 0.74% 0.74% 0.74% 0.74%
130% AFR 0.81% 0.81% 0.81% 0.81%
150% AFR 0.93% 0.93% 0.93% 0.93%
175% AFR 1.09% 1.09% 1.09% 1.09%

Long-term

AFR 1.62% 1.61% 1.61% 1.60%
110% AFR 1.78% 1.77% 1.77% 1.76%
120% AFR 1.94% 1.93% 1.93% 1.92%
130% AFR 2.10% 2.09% 2.08% 2.08%

REV. RUL. 2021-5 TABLE 2

3
Adjusted AFR for March 2021

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.08% 0.08% 0.08% 0.08%

Mid-term
adjusted AFR 0.47% 0.47% 0.47% 0.47%

Long-term
adjusted AFR 1.22% 1.22% 1.22% 1.22%

REV. RUL. 2021-5 TABLE 3

Rates Under Section 382 for March 2021

Adjusted federal long-term rate for the current month 1.22%

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.) 1.22%

REV. RUL. 2021-5 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for March 2021
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 7.26%

Appropriate percentage for the 30% present value low-income
housing credit 3.11%

REV. RUL. 2021-5 TABLE 5

Rate Under Section 7520 for March 2021

4

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 . 8%

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