rr-04-9.pdf

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Part I

Section 1274.--Determination of Issue Price in the Case of
Certain Debt Instruments Issued for Property

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288,
7520, 7872.)

Rev. Rul. 2004-9

This revenue ruling provides various prescribed rates for federal income tax
purposes for February 2004 (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)(2) for buildings placed in
service during the current month. Finally, Table 5 contains the federal rate for
determining the present value of annuity, an interest for life or for a term of years,
or a remainder or a reversionary interest for purposes of section 7520.

2
REV. RUL. 2004-9 TABLE 1

Applicable Federal Rates (AFR) for February 2004

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

AFR 1.62% 1.61% 1.61% 1.60%
110% AFR 1.78% 1.77% 1.77% 1.76%
120% AFR 1.94% 1.93% 1.93% 1.92%
130% AFR 2.10% 2.09% 2.08% 2.08%

Mid-term

AFR 3.44% 3.41% 3.40% 3.39%
110% AFR 3.79% 3.75% 3.73% 3.72%
120% AFR 4.13% 4.09% 4.07% 4.06%
130% AFR 4.48% 4.43% 4.41% 4.39%
150% AFR 5.19% 5.12% 5.09% 5.07%
175% AFR 6.06% 5.97% 5.93% 5.90%

Long-term

AFR 4.94% 4.88% 4.85% 4.83%
110% AFR 5.44% 5.37% 5.33% 5.31%
120% AFR 5.95% 5.86% 5.82% 5.79%
130% AFR 6.44% 6.34% 6.29% 6.26%

3
REV. RUL. 2004-9 TABLE 2

Adjusted AFR for February 2004

Period for Compounding

Annual
Semiannual Quarterly Monthly

Short-term
adjusted AFR 1.41% 1.41% 1.41% 1.41%

Mid-term
adjusted AFR 2.64% 2.62% 2.61% 2.61%

Long-term
adjusted AFR 4.31% 4.26% 4.24% 4.22%

REV. RUL. 2004-9 TABLE 3

Rates Under Section 382 for February 2004

Adjusted federal long-term rate for the current month 4.31%

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.) 4.58%

4

REV. RUL. 2004-9 TABLE 4

Appropriate Percentages Under Section 42(b)(2)
for February 2004

Appropriate percentage for the 70% present value low income
housing credit 7.97%

Appropriate percentage for the 30% present value low income
housing credit 3.42%

REV. RUL. 2004-9 TABLE 5

Rate Under Section 7520 for February 2004

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 4.2%