rr-09-08.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. 2009-8

This revenue ruling provides various prescribed rates for federal income tax
purposes for March 2009 (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, and before December 31, 2013,
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. 2009-8 TABLE 1 Applicable Federal Rates (AFR) for March 2009

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.72%

.72%

.72%

.72%

110% AFR

.79%

.79%

.79%

.79%

120% AFR

.86%

.86%

.86%

.86%

130% AFR

.94%

.94%

94%

.94%

Mid-term

AFR

1.94%

1.93%

1.93%

1.92%

110% AFR

2.13%

2.12%

2.11%

2.11%

120% AFR

2.33%

2.32%

2.31%

2.31%

130% AFR

2.53%

2.51%

2.50%

2.50%

150% AFR

2.92%

2.90%

2.89%

2.88%

175% AFR

3.41%

3.38%

3.37%

3.36%

Long-term

AFR

3.52%

3.49%

3.47%

3.46%

110% AFR

3.88%

3.84%

3.82%

3.81%

120% AFR

4.23%

4.19%

4.17%

4.15%

130% AFR

4.59%

4.54%

4.51%

4.50%

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REV. RUL. 2009-8 TABLE 2 Adjusted AFR for March 2009

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

.84%

.84%

.84%

.84%

Mid-term adjusted AFR

2.04%

2.03%

2.02%

2.02%

Long-term adjusted AFR

4.58%

4.53%

4.50%

4.49%

REV. RUL. 2009-8 TABLE 3
Rates Under Section 382 for March 2009

Adjusted federal long-term rate for the current month
4.58%

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.)

5.49%

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# REV. RUL. 2009-8 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for March 2009

Note: Under Section 42(b)(2), the applicable percentage for non-federally
subsidized new buildings placed in service after July 30, 2008, and before
December 31, 2013, shall not be less than 9%.

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%

# REV. RUL. 2009-8 TABLE 5 Rate Under Section 7520 for March 2009

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
2.4%