rr-10-20.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. 2010-20

This revenue ruling provides various prescribed rates for federal
income tax purposes for September 2010 (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. 2010-20 TABLE 1 Applicable Federal Rates (AFR) for September 2010

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

46%

.46%

46%

.46%

110% AFR

51%

.51%

.51%

.51%

120% AFR

.55%

55%

.55%

.55%

130% AFR

.60%

.60%

.60%

.60%

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

3.66%

3.63%

3.61%

3.60%

110% AFR

4.03%

3.99%

3.97%

3.96%

120% AFR

4.41%

4.36%

4.34%

4.32%

130% AFR

4.78%

4.72%

4.69%

4.67%

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# REV. RUL. 2010-20 TABLE 2 Adjusted AFR for September 2010

REV. RUL. 2010-20 TABLE 3 Rates Under Section 382 for September 2010

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

.43%

.43%

.43%

.43%

Mid-term adjusted AFR

1.62%

1.61%

1.61%

1.60%

Long-term adjusted AFR

3.86%

3.82%

3.80%

3.79%

Adjusted federal long-term rate for the current month
3.86%

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.)

3.99%

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# REV. RUL. 2010-20 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for September 2010

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
7.65%

Appropriate percentage for the 30% present value low-income
housing credit
3.28%

## REV. RUL. 2010-20 TABLE 5 Rate Under Section 7520 for September 2010

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%