rr-09-05.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. 2009-5

This revenue ruling provides various prescribed rates for federal income tax
purposes for February 2009 (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, and before December 31, 2013,
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. 2009-5 TABLE 1 Applicable Federal Rates (AFR) for February 2009

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.60%

.60%

.60%

.60%

110% AFR

.66%

.66%

.66%

.66%

120% AFR

.72%

.72%

.72%

.72%

130% AFR

.78%

.78%

.78%

.78%

Mid-term

AFR

1.65%

1.64%

1.64%

1.63%

110% AFR

1.81%

1.80%

1.80%

1.79%

120% AFR

1.98%

1.97%

1.97%

1.96%

130% AFR

2.14%

2.13%

2.12%

2.12%

150% AFR

2.48%

2.46%

2.45%

2.45%

175% AFR

2.89%

2.87%

2.86%

2.85%

Long-term

AFR

2.96%

2.94%

2.93%

2.92%

110% AFR

3.26%

3.23%

3.22%

3.21%

120% AFR

3.56%

3.53%

3.51%

3.50%

130% AFR

3.86%

3.82%

3.80%

3.79%

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REV. RUL. 2009-5 TABLE 2 Adjusted AFR for February 2009

Period for Compounding

Monthly

Annual

Semiannual

Quarterly

Short-term adjusted AFR

1.50%

1.49%

1.49%

1.49%

Mid-term adjusted AFR

2.83%

2.81%

2.80%

2.79%

Long-term adjusted AFR

5.27%

5.20%

5.17%

5.14%

REV. RUL. 2009-5 TABLE 3
Rates Under Section 382 for February 2009

Adjusted federal long-term rate for the current month
5.27%

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.)

5.49%

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# REV. RUL. 2009-5 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for February 2009

Note: Under Section 42(b)(2), the applicable percentage for non-federally
subsidized new buildings placed in service after July 30, 2008, and before
December 31, 2013, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income
housing credit
7.53%

Appropriate percentage for the 30% present value low-income
housing credit
3.23%

# REV. RUL. 2009-5 TABLE 5 Rate Under Section 7520 for February 2009

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
2.0%