rr-09-16.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. 2009-16

This revenue ruling provides various prescribed rates for federal income tax
purposes for June 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. 2009-16 TABLE 1 Applicable Federal Rates (AFR) for June 2009

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.75%

.75%

.75%

.75%

110% AFR

.83%

.83%

.83%

.83%

120% AFR

90%

90%

.90%

.90%

130% AFR

.98%

.98%

98%

.98%

Mid-term

AFR

2.25%

2.24%

2.23%

2.23%

110% AFR

2.48%

2.46%

2.45%

2.45%

120% AFR

2.71%

2.69%

2.68%

2.68%

130% AFR

2.93%

2.91%

2.90%

2.89%

150% AFR

3.39%

3.36%

3.35%

3.34%

175% AFR

3.96%

3.92%

3.90%

3.89%

Long-term

AFR

3.88%

3.84%

3.82%

3.81%

110% AFR

4.26%

4.22%

4.20%

4.18%

120% AFR

4.66%

4.61%

4.58%

4.57%

130% AFR

5.05%

4.99%

4.96%

4.94%

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REV. RUL. 2009-16 TABLE 2 Adjusted AFR for June 2009

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

.75%

.75%

.75%

.75%

Mid-term adjusted AFR

2.05%

2.04%

2.03%

2.03%

Long-term adjusted AFR

4.28%

4.24%

4.22%

4.20%

REV. RUL. 2009-16 TABLE 3
Rates Under Section 382 for June 2009

Adjusted federal long-term rate for the current month
4.28%

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.)
4.61%

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## REV. RUL. 2009-16 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for June 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
7.71%

Appropriate percentage for the 30% present value low-income
housing credit
3.30%

REV. RUL. 2009-16 TABLE 5
Rate Under Section 7520 for June 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
2.8%