rr-23-13.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. 2023-13

This revenue ruling provides various prescribed rates for federal income tax
purposes for August 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
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. 2023-13 TABLE 1

Applicable Federal Rates (AFR) for August 2023

Period for Compounding
Annual Semiannual Quarte rly Monthly

Short-term

AFR 5.07% 5.01% 4.98% 4.96%
110% AFR 5.59% 5.51% 5.47% 5.45%
120% AFR 6.10% 6.01% 5.97% 5. 94%
130% AFR 6.62% 6.51% 6.46% 6.42%

Mid-term

AFR 4.09% 4.05% 4.03% 4.02%
110% AFR 4.51% 4.46% 4.44% 4.42%
120% AFR 4.92% 4.86% 4.83% 4.81%
130% AFR 5.34% 5.27% 5.24% 5.21%
150% AFR 6.17% 6.08% 6.03% 6.00%
175% AFR 7.22% 7.09% 7.03% 6.99%

Long-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%

REV. RUL. 2023-13 TABLE 2

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Adjusted AFR for August 2023

Period for Compounding
Annual Semia nnual Quarterly Monthly
Short-term
adjusted AFR 3.84% 3.80% 3.78% 3.77%

Mid-term
adjusted AFR 3.10% 3.08% 3.07% 3.06%

Long-term
adjusted AFR 3.05% 3.03% 3.02% 3.01%

REV. RUL. 2023-13 TABLE 3

Rates Under Section 382 for August 2023

Adjusted federal l ong-term rate for the current month 3.05%

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.) 3.05%

REV. RUL. 2023-13 TABLE 4

Appropriat e Percentages Under Section 42(b)(1) for August 2023
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized
new buildings placed in service after Jul y 30, 2008, shall not be less than 9%.

Appropriate percenta ge for the 70% present value low-income
housing credit 7.94%

Appropriate percentage for the 30% present value low-income
housing credit 3.40%

REV. RUL. 2023-13 TABLE 5

Rate Under Section 7520 for August 2023

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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 5.00%