rr-24-26.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. 2024-26

This revenue ruling provides various prescribed rates for federal income tax
purposes for December 2024 (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. 2024-26 TABLE 1

Applicable Federal Rates (AFR) for December 2024

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 4.30% 4.25% 4.23% 4.21%
110% AFR 4.73% 4.68% 4.65% 4.64%
120% AFR 5.17% 5.10% 5.07% 5.05%
130% AFR 5.61% 5.53% 5.49% 5.47%

Mid-term

AFR 4.18% 4.14% 4.12% 4.10%
110% AFR 4.60% 4.55% 4.52% 4.51%
120% AFR 5.03% 4.97% 4.94% 4.92%
130% AFR 5.45% 5.38% 5.34% 5.32%
150% AFR 6.31% 6.21% 6.16% 6.13%
175% AFR 7.38% 7.25% 7.19% 7.14%

Long-term

AFR 4.53% 4.48% 4.46% 4.44%
110% AFR 4.99% 4.93% 4.90% 4.88%
120% AFR 5.45% 5.38% 5.34% 5.32%
130% AFR 5.90% 5.82% 5.78% 5.75%

REV. RUL. 2024-26 TABLE 2

Adjusted AFR for December 2024

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Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 3.26% 3.23% 3.22% 3.21%

Mid-term
adjusted AFR 3.16% 3.14% 3.13% 3.12%

Long-term
adjusted AFR 3.43% 3.40% 3.39% 3.38%

REV. RUL. 2024-26 TABLE 3

Rates Under Section 382 for December 2024

Adjusted federal long-term rate for the current month 3.43%

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.) 3.43%

REV. RUL. 2024-26 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for December 2024
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 8.01%

Appropriate percentage for the 30% present value low-income
housing credit 3.43%

REV. RUL. 2024-26 TABLE 5

Rate Under Section 7520 for December 2024

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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 5.0%