rr-18-30.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. 2018-30

This revenue ruling provides various prescribed rates for federal
income tax purposes for December 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. 2018-30 TABLE 1

Applicable Federal Rates (AFR) for December 2018

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 2.76% 2.74% 2.73% 2.72%
110% AFR 3.03% 3.01% 3.00% 2.99%
120% AFR 3.32% 3.29% 3.28% 3.27%
130% AFR 3.59% 3.56% 3.54% 3.53%

Mid-term

AFR 3.07% 3.05% 3.04% 3.03%
110% AFR 3.39% 3.36% 3.35% 3.34%
120% AFR 3.69% 3.66% 3.64% 3.63%
130% AFR 4.01% 3.97% 3.95% 3.94%
150% AFR 4.63% 4.58% 4.55% 4.54%
175% AFR 5.41% 5.34% 5.30% 5.28%

Long-term

AFR 3.31% 3.28% 3.27% 3.26%
110% AFR 3.64% 3.61% 3.59% 3.58%
120% AFR 3.98% 3.94% 3.92% 3.91%
130% AFR 4.31% 4.26% 4.24% 4.22%

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REV. RUL. 2018-30 TABLE 2

Adjusted AFR for December 2018

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 2.09% 2.08% 2.07% 2.07%

Mid-term
adjusted AFR 2.33% 2.32% 2.31% 2.31%

Long-term
adjusted AFR 2.51% 2.49% 2.48% 2.48%

REV. RUL. 2018-30 TABLE 3

Rates Under Section 382 for December 2018

Adjusted federal long-term rate for the current month 2.51%

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.) 2.51%

REV. RUL. 2018-30 TABLE 4

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Appropriate Percentages Under Section 42(b)(1) for December 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 7.74%

Appropriate percentage for the 30% present value low-income
housing credit 3.32%

REV. RUL. 2018-30 TABLE 5

Rate Under Section 7520 for December 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%