rr-11-20.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

Part I

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. 2011-20

This revenue ruling provides various prescribed rates for federal
income tax purposes for September 2011 (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.

2

REV. RUL. 2011-20 TABLE 1

Applicable Federal Rates (AFR) for September 2011

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

AFR .26% .26% .26% .26%
110% AFR .29% .29% .29% .29%
120% AFR .31% .31% .31% .31%
130% AFR .34% .34% .34% .34%

Mid-term

AFR 1.63% 1.62% 1.62% 1.61%
110% AFR 1.79% 1.78% 1.78% 1.77%
120% AFR 1.95% 1.94% 1.94% 1.93%
130% AFR 2.12% 2.11% 2.10% 2.10%
150% AFR 2.44% 2.43% 2.42% 2.42%
175% AFR 2.86% 2.84% 2.83% 2.82%

Long-term

AFR 3.57% 3.54% 3.52% 3.51%
110% AFR 3.93% 3.89% 3.87% 3.86%
120% AFR 4.30% 4.25% 4.23% 4.21%
130% AFR 4.65% 4.60% 4.57% 4.56%

3

REV. RUL. 2011-20 TABLE 2

Adjusted AFR for September 2011

Period for Compounding

Annual
Semiannual Quarterly Monthly
Short-term
adjusted AFR .35% .35% .35% .35%

Mid-term
adjusted AFR 1.47% 1.46% 1.46% 1.46%

Long-term
adjusted AFR 3.77% 3.74% 3.72% 3.71%

REV. RUL. 2011-20 TABLE 3

Rates Under Section 382 for September 2011

Adjusted federal long-term rate for the current month 3.77%

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.) 3.86%

4

REV. RUL. 2011-20 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for September 2011

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 7.60%

Appropriate percentage for the 30% present value low-income
housing credit 3.26%

REV. RUL. 2011-20 TABLE 5

Rate Under Section 7520 for September 2011

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 2.0%