rr-20-06.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. 2020-6

This revenue ruling provides various prescribed rates for federal income tax
purposes for March 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%. 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. 2020-6 TABLE 1

2
Applicable Federal Rates (AFR) for March 2020

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 1.50% 1.49% 1.49% 1.49%
110% AFR 1.65% 1.64% 1.64% 1.63%
120% AFR 1.80% 1.79% 1.79% 1.78%
130% AFR 1.95% 1.94% 1.94% 1.93%

Mid-term

AFR 1.53% 1.52% 1.52% 1.52%
110% AFR 1.68% 1.67% 1.67% 1.66%
120% AFR 1.83% 1.82% 1.82% 1.81%
130% AFR 1.99% 1.98% 1.98% 1.97%
150% AFR 2.29% 2.28% 2.27% 2.27%
175% AFR 2.68% 2.66% 2.65% 2.65%

Long-term

AFR 1.93% 1.92% 1.92% 1.91%
110% AFR 2.12% 2.11% 2.10% 2.10%
120% AFR 2.31% 2.30% 2.29% 2.29%
130% AFR 2.52% 2.50% 2.49% 2.49%

REV. RUL. 2020-6 TABLE 2

Adjusted AFR for March 2020

3

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 1.13% 1.13% 1.13% 1.13%

Mid-term
adjusted AFR 1.15% 1.15% 1.15% 1.15%

Long-term
adjusted AFR 1.47% 1.46% 1.46% 1.46%

REV. RUL. 2020-6 TABLE 3

Rates Under Section 382 for March 2020

Adjusted federal long-term rate for the current month 1.47%

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.) 1.63%

REV. RUL. 2020-6 TABLE 4

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

Appropriate percentage for the 70% present value low-income
housing credit 7.40%

Appropriate percentage for the 30% present value low-income
housing credit 3.17%

REV. RUL. 2020-6 TABLE 5

Rate Under Section 7520 for March 2020

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 1.8%