rr-18-06.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.)

Rev. Rul. 2018-06

This revenue ruling provides various prescribed rates for federal
income tax purposes for March 2018 (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. 2018-06 TABLE 1 Applicable Federal Rates (AFR) for March 2018

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

1.96%

1.95%

1.95%

1.94%

110% AFR

2.16%

2.15%

2.14%

2.14%

120% AFR

2.35%

2.34%

2.33%

2.33%

130% AFR

2.56%

2.54%

2.53%

2.53%

Mid-term

AFR

2.57%

2.55%

2.54%

2.54%

110% AFR

2.83%

2.81%

2.80%

2.79%

120% AFR

3.08%

3.06%

3.05%

3.04%

130% AFR

3.35%

3.32%

3.31%

3.30%

150% AFR

3.87%

3.83%

3.81%

3.80%

175% AFR

4.51%

4.46%

4.44%

4.42%

Long-term

AFR

2.88%

2.86%

2.85%

2.84%

110% AFR

3.17%

3.15%

3.14%

3.13%

120% AFR

3.46%

3.43%

3.42%

3.41%

130% AFR

3.75%

3.72%

3.70%

3.69%

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REV. RUL. 2018-06 TABLE 2 Adjusted AFR for March 2018

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

1.49%

1.48%

1.48%

1.48%

Mid-term adjusted AFR

1.95%

1.94%

1.94%

1.93%

Long-term adjusted AFR

2.18%

2.17%

2.16%

2.16%

REV. RUL. 2018-06 TABLE 3
Rates Under Section 382 for March 2018

Adjusted federal long-term rate for the current month
2.18%

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.)

2.18%

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## REV. RUL. 2018-06 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for March 2018
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%.

REV. RUL. 2018-06 TABLE 5 Rate Under Section 7520 for March 2018

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

7.63%

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

3.27%

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
3.0%