rr-09-20.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, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520,
7872.)

# Rev. Rul. 2009-20

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 2009 (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, and before December 31, 2013, shall not be
less than 9%. 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.
Finally, Table 6 contains the blended annual rate for 2009 for purposes of
section 7872.

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# REV. RUL. 2009-20 TABLE 1 Applicable Federal Rates (AFR) for July 2009

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.82%

.82%

.82%

.82%

110% AFR

90%

90%

90%

90%

120% AFR

98%

98%

98%

98%

130% AFR

1.07%

1.07%

1.07%

1.07%

Mid-term

AFR

2.76%

2.74%

2.73%

2.72%

110% AFR

3.03%

3.01%

3.00%

2.99%

120% AFR

3.32%

3.29%

3.28%

3.27%

130% AFR

3.59%

3.56%

3.54%

3.53%

150% AFR

4.15%

4.11%

4.09%

4.08%

175% AFR

4.86%

4.80%

4.77%

4.75%

Long-term

AFR

4.36%

4.31%

4.29%

4.27%

110% AFR

4.80%

4.74%

4.71%

4.69%

120% AFR

5.24%

5.17%

5.14%

5.12%

130% AFR

5.68%

5.60%

5.56%

5.54%

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REV. RUL. 2009-20 TABLE 2 Adjusted AFR for July 2009

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

.84%

.84%

.84%

.84%

Mid-term adjusted AFR

2.22%

2.21%

2.20%

2.20%

Long-term adjusted AFR

4.33%

4.28%

4.26%

4.24%

REV. RUL. 2009-20 TABLE 3
Rates Under Section 382 for July 2009

Adjusted federal long-term rate for the current month
4.33%

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%

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## REV. RUL. 2009-20 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for July 2009

Note: Under Section 42(b)(2), the applicable percentage for non-federally
subsidized new buildings placed in service after July 30, 2008, and before
December 31, 2013, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income
housing credit
7.82%

Appropriate percentage for the 30% present value low-income
housing credit
3.35%

# REV. RUL. 2009-20 TABLE 5 Rate Under Section 7520 for July 2009

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
3.4%

REV. RUL. 2009-20 TABLE 6
Blended Annual Rate for 2009

Section 7872(e)(2) blended annual rate for 2009
0.82%