rr-08-46.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. 2008-46

This revenue ruling provides various prescribed rates for federal
income tax purposes for September 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. 2008-46 TABLE 1 Applicable Federal Rates (AFR) for September 2008

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

2.38%

2.37%

2.36%

2.36%

110% AFR

2.63%

2.61%

2.60%

2.60%

120% AFR

2.86%

2.84%

2.83%

2.82%

130% AFR

3.10%

3.08%

3.07%

3.06%

Mid-term

AFR

3.46%

3.43%

3.42%

3.41%

110% AFR

3.81%

3.77%

3.75%

3.74%

120% AFR

4.16%

4.12%

4.10%

4.09%

130% AFR

4.51%

4.46%

4.44%

4.42%

150% AFR

5.22%

5.15%

5.12%

5.10%

175% AFR

6.09%

6.00%

5.96%

5.93%

Long-term

AFR

4.58%

4.53%

4.50%

4.49%

110% AFR

5.04%

4.98%

4.95%

4.93%

120% AFR

5.51%

5.44%

5.40%

5.38%

130% AFR

5.98%

5.89%

5.85%

5.82%

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REV. RUL. 2008-46 TABLE 2 Adjusted AFR for September 2008

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

1.81%

1.80%

1.80%

1.79%

Mid-term adjusted AFR

3.21%

3.18%

3.17%

3.16%

Long-term adjusted AFR

4.53%

4.48%

4.46%

4.44%

REV. RUL. 2008-46 TABLE 3
Rates Under Section 382 for September 2008

Adjusted federal long-term rate for the current month
4.53%

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.)
4.65%

# REV. RUL. 2008-46 TABLE 4

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

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

7.93%

Appropriate percentage for the 30% present value low-income

housing credit

3.40%

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# REV. RUL. 2008-46 TABLE 5 Rate Under Section 7520 for September 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
4.2%