rr-08-43.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. 2008-43

This revenue ruling provides various prescribed rates for federal
income tax purposes for August 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. 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. 2008-43 TABLE 1 Applicable Federal Rates (AFR) for August 2008

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

2.54%

2.52%

2.51%

2.51%

110% AFR

2.79%

2.77%

2.76%

2.75%

120% AFR

3.04%

3.02%

3.01%

3.00%

130% AFR

3.31%

3.28%

3.27%

3.26%

Mid-term

AFR

3.55%

3.52%

3.50%

3.49%

110% AFR

3.91%

3.87%

3.85%

3.84%

120% AFR

4.26%

4.22%

4.20%

4.18%

130% AFR

4.63%

4.58%

4.55%

4.54%

150% AFR

5.35%

5.28%

5.25%

5.22%

175% AFR

6.25%

6.16%

6.11%

6.08%

Long-term

AFR

4.58%

4.53%

4.50%

4.49%

110% AFR

5.04%

4.98%

4.95%

4.93%

120% AFR

5.51%

5.44%

5.40%

5.38%

130% AFR

5.98%

5.89%

5.85%

5.82%

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REV. RUL. 2008-43 TABLE 2 Adjusted AFR for August 2008

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

2.09%

2.08%

2.07%

2.07%

Mid-term adjusted AFR

3.48%

3.45%

3.44%

3.43%

Long-term adjusted AFR

4.65%

4.60%

4.57%

4.56%

REV. RUL. 2008-43 TABLE 3
Rates Under Section 382 for August 2008

Adjusted federal long-term rate for the current month
4.65%

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.)
4.65%

# REV. RUL. 2008-43 TABLE 4

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

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

7.94%

Appropriate percentage for the 30% present value low-income

housing credit

3.40%

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# REV. RUL. 2008-43 TABLE 5 Rate Under Section 7520 for August 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%