rr-10-12.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. 2010-12

This revenue ruling provides various prescribed rates for federal
income tax purposes for May 2010 (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. 2010-12 TABLE 1 Applicable Federal Rates (AFR) for May 2010

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.79%

.79%

.79%

.79%

110% AFR

.87%

.87%

.87%

.87%

120% AFR

.95%

95%

.95%

.95%

130% AFR

1.03%

1.03%

1.03%

1.03%

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

4.47%

4.42%

4.40%

4.38%

110% AFR

4.92%

4.86%

4.83%

4.81%

120% AFR

5.37%

5.30%

5.27%

5.24%

130% AFR

5.83%

5.75%

5.71%

5.68%

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REV. RUL. 2010-12 TABLE 2 Adjusted AFR for May 2010

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

.66%

.66%

.66%

.66%

Mid-term adjusted AFR

1.88%

1.87%

1.87%

1.86%

Long-term adjusted AFR

3.98%

3.94%

3.92%

3.91%

REV. RUL. 2010-12 TABLE 3
Rates Under Section 382 for May 2010

Adjusted federal long-term rate for the current month
3.98%

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.)
4.03%

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# REV. RUL. 2010-12 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for May 2010

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
7.85%

Appropriate percentage for the 30% present value low-income
housing credit
3.36%

# REV. RUL. 2010-12 TABLE 5 Rate Under Section 7520 for May 2010

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%