rr-18-19.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. 2018-19

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 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%. 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 2018 for purposes of section 7872.

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REV. RUL. 2018-19 TABLE 1

Applicable Federal Rates (AFR) for July 2018

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 2.38% 2.37% 2.36% 2.36%
110% AFR 2.63% 2.61% 2.60% 2.60%
120% AFR 2.86% 2.84% 2.83% 2.82%
130% AFR 3.10% 3.08% 3.07% 3.06%

Mid-term

AFR 2.87% 2.85% 2.84% 2.83%
110% AFR 3.16% 3.14% 3.13% 3.12%
120% AFR 3.45% 3.42% 3.41% 3.40%
130% AFR 3.74% 3.71% 3.69% 3.68%
150% AFR 4.33% 4.28% 4.26% 4.24%
175% AFR 5.05% 4.99% 4.96% 4.94%

Long-term

AFR 3.06% 3.04% 3.03% 3.02%
110% AFR 3.37% 3.34% 3.33% 3.32%
120% AFR 3.68% 3.65% 3.63% 3.62%
130% AFR 3.99% 3.95% 3.93% 3.92%

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REV. RUL. 2018-19 TABLE 2

Adjusted AFR for July 2018

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 1.81% 1.80% 1.80% 1.79%

Mid-term
adjusted AFR 2.17% 2.16% 2.15% 2 .15%

Long-term
adjusted AFR 2.32% 2.31% 2.30% 2.30%

REV. RUL. 2018-19 TABLE 3

Rates Under Section 382 for July 2018

Adjusted federal long-term rate for the current month 2.32%

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.) 2.32%

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REV. RUL. 2018-19 TABLE 4

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

Appropriate percentage for the 70% present value low-income
housing credit 7.68%

Appropriate percentage for the 30% present value low-income
housing credit 3.29%

REV. RUL. 2018-19 TABLE 5

Rate Under Section 7520 for July 2018

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. 2018-19 TABLE 6

Blended Annual Rate for 2018

Section 7872(e)(2) blended annual rate for 2018 2.03%