rr-08-33.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. 2008-33

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 2008 (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. 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 2008
for purposes of section 7872.

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# REV. RUL. 2008-33 TABLE 1 Applicable Federal Rates (AFR) for July 2008

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

2.42%

2.41%

2.40%

2.40%

110% AFR

2.67%

2.65%

2.64%

2.64%

120% AFR

2.91%

2.89%

2.88%

2.87%

130% AFR

3.15%

3.13%

3.12%

3.11%

Mid-term

AFR

3.45%

3.42%

3.41%

3.40%

110% AFR

3.80%

3.76%

3.74%

3.73%

120% AFR

4.14%

4.10%

4.08%

4.07%

130% AFR

4.50%

4.45%

4.43%

4.41%

150% AFR

5.20%

5.13%

5.10%

5.08%

175% AFR

6.08%

5.99%

5.95%

5.92%

Long-term

AFR

4.60%

4.55%

4.52%

4.51%

110% AFR

5.07%

5.01%

4.98%

4.96%

120% AFR

5.53%

5.46%

5.42%

5.40%

130% AFR

6.01%

5.92%

5.88%

5.85%

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REV. RUL. 2008-33 TABLE 2 Adjusted AFR for July 2008

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

2.07%

2.06%

2.05%

2.05%

Mid-term adjusted AFR

3.12%

3.10%

3.09%

3.08%

Long-term adjusted AFR

4.52%

4.47%

4.45%

4.43%

REV. RUL. 2008-33 TABLE 3
Rates Under Section 382 for July 2008

Adjusted federal long-term rate for the current month
4.52%

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.)
4.71%

# REV. RUL. 2008-33 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for July 2008

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

7.93%

Appropriate percentage for the 30% present value low-income

housing credit

3.40%

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# REV. RUL. 2008-33 TABLE 5 Rate Under Section 7520 for July 2008

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%

REV. RUL. 2008-33 TABLE 6
Blended Annual Rate for 2008

Section 7872(e)(2) blended annual rate for 2008
2.8%