rr-22-18.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. 2022-18

This revenue ruling provides various prescribed rates for federal income tax
purposes for October 2022 (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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REV. RUL. 2022-18 TABLE 1
Applicable Federal Rates (AFR) for October 2022
Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 3.40% 3.37% 3.36% 3.35%
110% AFR 3.74% 3.71% 3.69% 3.68%
120% AFR 4.08% 4.04% 4.02% 4.01%
130% AFR 4.43% 4.38% 4.36% 4.34%
Mid-term

AFR 3.28% 3.25% 3.24% 3.23%
110% AFR 3.61% 3.58% 3.56% 3.55%
120% AFR 3.94% 3.90% 3.88% 3.87%
130% AFR 4.27% 4.23% 4.21% 4.19%
150% AFR 4.94% 4.88% 4.85% 4.83%
175% AFR 5.77% 5.69% 5.65% 5.62%
Long-term

AFR 3.43% 3.40% 3.39% 3.38%
110% AFR 3.77% 3.74% 3.72% 3.71%
120% AFR 4.12% 4.08% 4.06% 4.05%
130% AFR 4.47% 4.42% 4.40% 4.38%

REV. RUL. 2022-18 TABLE 2
Adjusted AFR for October 2022
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR
2.58% 2.56% 2.55% 2.55%
Mid-term
adjusted AFR
2.49% 2.47% 2.46% 2.46%
Long-term
adjusted AFR
2.60% 2.58% 2.57% 2.57%

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REV. RUL. 2022-18 TABLE 3
Rates Under Section 382 for October 2022
Adjusted federal long-term rate for the current month 2.60%
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.)
2.60%

REV. RUL. 2022-18 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for October 2022
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
7.78%
Appropriate percentage for the 30% present value low-income housing
credit
3.33%

REV. RUL. 2022-18 TABLE 5
Rate Under Section 7520 for October 2022
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
4.00%