rr-23-09.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. 2023-9

This revenue ruling provides various prescribed rates for federal income tax
purposes for May 2023 (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
secti on 1 274(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 a nd 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, unde r 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. 2023-9 TABLE 1

Applicable Federal Rates (AFR) for May 2023

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 4.30% 4.25% 4.23% 4.21%
110% AFR 4.73% 4.68% 4.65% 4.64%
120% AFR 5.17% 5.10% 5. 07% 5. 05%
130% AFR 5.61% 5.53% 5.49% 5.47%

Mid-term

AFR 3.57% 3.54% 3.52% 3.51%
110% AFR 3.93% 3.89% 3.87% 3.86%
120% AFR 4.30% 4.25% 4.23% 4.21%
130% AFR 4.65% 4.60% 4.57% 4.56%
150% AFR 5.38% 5.31% 5.28% 5.25%
175% AFR 6.30% 6.20% 6.15% 6.12%

Long-term

AFR 3.72% 3.69% 3.67% 3.66%
110% AFR 4.10% 4.06% 4.04% 4.03%
120% AFR 4.48% 4.43% 4.41% 4.39%
130% AFR 4.86% 4.80% 4.77% 4.75%

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REV. RUL. 2023-9 TABLE 2

Adjusted AFR for May 2023

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 3.26% 3.23% 3.22% 3.21%

Mid-term
adjusted AFR 2.71% 2.69% 2.68% 2.68%

Long-term
adjusted AFR 2.82% 2.80% 2.79% 2.78%

REV. RUL. 2023-9 TABLE 3

Rates Under Section 382 for May 2023

Adjusted federal l ong-term rate for the current month 2.82%

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.) 3.04%

REV. RUL. 2023-9 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for May 2023
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 percenta ge for the 70% present value low-income
housing credit 7.84%

Appropriate percentage for the 30% present value low-income
housing credit 3.36%

REV. RUL. 2023-9 TABLE 5

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Rate Under Section 7520 for May 2023

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 4.40%