rr-08-20.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. 2008-20

This revenue ruling provides various prescribed rates for federal
income tax purposes for April 2008 (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 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. 2008-20 TABLE 1 Applicable Federal Rates (AFR) for April 2008

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

1.85%

1.84%

1.84%

1.83%

110% AFR

2.03%

2.02%

2.01%

2.01%

120% AFR

2.22%

2.21%

2.20%

2.20%

130% AFR

2.40%

2.39%

2.38%

2.38%

Mid-term

AFR

2.87%

2.85%

2.84%

2.83%

110% AFR

3.16%

3.14%

3.13%

3.12%

120% AFR

3.45%

3.42%

3.41%

3.40%

130% AFR

3.74%

3.71%

3.69%

3.68%

150% AFR

4.33%

4.28%

4.26%

4.24%

175% AFR

5.05%

4.99%

4.96%

4.94%

Long-term

AFR

4.40%

4.35%

4.33%

4.31%

110% AFR

4.85%

4.79%

4.76%

4.74%

120% AFR

5.29%

5.22%

5.19%

5.16%

130% AFR

5.74%

5.66%

5.62%

5.59%

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REV. RUL. 2008-20 TABLE 2 Adjusted AFR for April 2008

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

1.99%

1.98%

1.98%

1.97%

Mid-term adjusted AFR

3.28%

3.25%

3.24%

3.23%

Long-term adjusted AFR

4.55%

4.50%

4.47%

4.46%

REV. RUL. 2008-20 TABLE 3
Rates Under Section 382 for April 2008

Adjusted federal long-term rate for the current month
4.55%

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.)
4.55%

# REV. RUL. 2008-20 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for April 2008

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

7.84%

Appropriate percentage for the 30% present value low-income

housing credit

3.36%

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# REV. RUL. 2008-20 TABLE 5 Rate Under Section 7520 for April 2008

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
3.4%