rr-18-28.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, 467, 468, 482, 483, 1288, 7520, 7872.)

Rev. Rul. 2018-28

This revenue ruling provides various prescribed rates for federal
income tax purposes for November 2018 (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, 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. 2018-28 TABLE 1

Applicable Federal Rates (AFR) for November 2018

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 2.70% 2.68% 2.67% 2.67%
110% AFR 2.97% 2.95% 2.94% 2.93%
120% AFR 3.25% 3.22% 3.21% 3.20%
130% AFR 3.51% 3.48% 3.46% 3.46%

Mid-term

AFR 3.04% 3.02% 3.01% 3.00%
110% AFR 3.35% 3.32% 3.31% 3.30%
120% AFR 3.65% 3.62% 3.60% 3.59%
130% AFR 3.97% 3.93% 3.91% 3.90%
150% AFR 4.58% 4.53% 4.50% 4.49%
175% AFR 5.36% 5.29% 5.26% 5.23%

Long-term

AFR 3.22% 3.19% 3.18% 3.17%
110% AFR 3.54% 3.51% 3.49% 3.48%
120% AFR 3.87% 3.83% 3.81% 3.80%
130% AFR 4.19% 4.15% 4.13% 4.11%

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REV. RUL. 2018-28 TABLE 2

Adjusted AFR for November 2018

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 2.04% 2.03% 2.02% 2.02%

Mid-term
adjusted AFR 2.30% 2.29% 2.28% 2.28%

Long-term
adjusted AFR 2.43% 2.42% 2.41% 2.41%

REV. RUL. 2018-28 TABLE 3

Rates Under Section 382 for November 2018

Adjusted federal long-term rate for the current month 2.43%

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.) 2.43%

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REV. RUL. 2018-28 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for November 2018
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized
new buildings placed in service after July 30, 2008, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income
housing credit 7.72%

Appropriate percentage for the 30% present value low-income
housing credit 3.31%

REV. RUL. 2018-28 TABLE 5

Rate Under Section 7520 for November 2018

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 3.6%