rr-21-12.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. 2021-12

This revenue ruling provides various prescribed rates for federal income tax
purposes for July 2021 (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%. 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. Finally, Table 6 contains the blended annual rate for 2021 for purposes of
section 7872.

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REV. RUL. 2021-12 TABLE 1

Applicable Federal Rates (AFR) for July 2021

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.12% 0.12% 0.12% 0.12%
110% AFR 0.13% 0.13% 0.13% 0.13%
120% AFR 0.14% 0.14% 0.14% 0.14%
130% AFR 0.16% 0.16% 0.16% 0.16%

Mid-term

AFR 1.00% 1.00% 1.00% 1.00%
110% AFR 1.10% 1.10% 1.10% 1.10%
120% AFR 1.20% 1.20% 1.20% 1.20%
130% AFR 1.30% 1.30% 1.30% 1.30%
150% AFR 1.51% 1.50% 1.50% 1.50%
175% AFR 1.76% 1.75% 1.75% 1.74%

Long-term

AFR 2.07% 2.06% 2.05% 2.05%
110% AFR 2.28% 2.27% 2.26% 2.26%
120% AFR 2.49% 2.47% 2.46% 2.46%
130% AFR 2.70% 2.68% 2.67% 2.67%

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REV. RUL. 2021-12 TABLE 2

Adjusted AFR for July 2021

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.09% 0.09% 0.09% 0.09%

Mid-term
adjusted AFR 0.76% 0.76% 0.76% 0.76%

Long-term
adjusted AFR 1.57% 1.56% 1.56% 1.55%

REV. RUL. 2021-12 TABLE 3

Rates Under Section 382 for July 2021

Adjusted federal long-term rate for the current month 1.57%

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.) 1.64%

REV. RUL. 2021-12 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for July 2021
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 7.35%

Appropriate percentage for the 30% present value low-income
housing credit 3.15%

REV. RUL. 2021-12 TABLE 5

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Rate Under Section 7520 for July 2021

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 1.2%

REV. RUL. 2021-12 TABLE 6

Blended Annual Rate for 2021

Section 7872(e)(2) blended annual rate for 2021 .13%