rr-03-45.pdf

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# 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. 2003-45

This revenue ruling provides various prescribed rates for
federal income tax purposes for May 2003 (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) (2) for buildings placed in service
during the current month. Finally, Table 5 contains the federal
rate for determining the present value of 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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Applicable Federal Rates (AFR) for May 2003 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

1.53%

1.52%

1.52%

1.52%

110% AFR

1.68%

1.67%

1.67%

1.66%

120% AFR

1.83%

1.82%

1.82%

1.81%

130% AFR

1.99%

1.98%

1.98%

1.97%

Mid-Term

AFR

3.17%

3.15%

3.14%

3.13%

110% AFR

3.50%

3.47%

3.46%

3.45%

120% AFR

3.82%

3.78%

3.76%

3.75%

130% AFR

4.14%

4.10%

4.08%

4.07%

150% AFR

4.79%

4.73%

4.70%

4.68%

175% AFR

5.59%

5.51%

5.47%

5.45%

Long-Term

AFR

4.79%

4.73%

4.70%

4.68%

110% AFR

5.27%

5.20%

5.17%

5.14%

120% AFR

5.76%

5.68%

5.64%

5.61%

130% AFR

6.24%

6.15%

6.10%

6.07%

REV. RUL. 2003-45 TABLE 2 Adjusted AFR for May 2003 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

1.34%

1.34%

1.34%

1.34%

Mid-term adjusted AFR

2.72%

2.70%

2.69%

2.68%

Long-term adjusted AFR

4.45%

4.40%

4.38%

4.36%

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# REV. RUL. 2003-45 TABLE 3

Rates Under Section 382 for May 2003
Adjusted federal long-term rate for the current month
4.45%

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. )

4.58%

## REV. RUL. 2003-45 TABLE 4

Appropriate Percentages Under Section 42 (b) (2)
for May 2003

Appropriate percentage for the 70% present
value low-income housing credit
7.92%

Appropriate percentage for the 30% present
value low-income housing credit
3.40%

# REV. RUL. 2003-45 TABLE 5

Rate Under Section 7520 for May 2003

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
3.8%