rr-25-14.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. 2025-14

This revenue ruling provides various prescribed rates for federal income tax
purposes for August 2025 (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. 2025-14 TABLE 1

Applicable Federal Rates (AFR) for August 2025

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 4.03% 3.99% 3.97% 3.96%
110% AFR 4.44% 4.39% 4.37% 4.35%
120% AFR 4.85% 4.79% 4.76% 4.74%
130% AFR 5.26% 5.19% 5.16% 5.13%

Mid-term

AFR 4.06% 4.02% 4.00% 3.99%
110% AFR 4.47% 4.42% 4.40% 4.38%
120% AFR 4.88% 4.82% 4.79% 4.77%
130% AFR 5.30% 5.23% 5.20% 5.17%
150% AFR 6.12% 6.03% 5.99% 5.96%
175% AFR 7.16% 7.04% 6.98% 6.94%

Long-term

AFR 4.82% 4.76% 4.73% 4.71%
110% AFR 5.31% 5.24% 5.21% 5.18%
120% AFR 5.79% 5.71% 5.67% 5.64%
130% AFR 6.29% 6.19% 6.14% 6.11%

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REV. RUL. 2025-14 TABLE 2

Adjusted AFR for August 2025

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 3.05% 3.03% 3.02% 3.01%

Mid-term
adjusted AFR 3.07% 3.05% 3.04% 3.03%

Long-term
adjusted AFR 3.64% 3.61% 3.59% 3.58%

REV. RUL. 2025-14 TABLE 3

Rates Under Section 382 for August 2025

Adjusted federal long-term rate for the current month 3.64%

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.) 3.71%

REV. RUL. 2025-14 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for August 2025
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 8.03%

Appropriate percentage for the 30% present value low-income
housing credit 3.44%

REV. RUL. 2025-14 TABLE 5

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Rate Under Section 7520 for August 2025

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 4.80%