rr-10-29.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. 2010-29

This revenue ruling provides various prescribed rates for federal
income tax purposes for December 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%. 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.
Finally, Table 6 contains contains the 2011 interest rate for sections 846
and 807.

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# REV. RUL. 2010-29 TABLE 1 Applicable Federal Rates (AFR) for December 2010

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.32%

.32%

.32%

.32%

110% AFR

.35%

.35%

.35%

.35%

120% AFR

.38%

.38%

.38%

.38%

130% AFR

.42%

.42%

.42%

.42%

Mid-term

AFR

1.53%

1.52%

1.52%

1.52%

110% AFR

1.68%

1.67%

1.67%

1.66%

120% AFR

1.83%

1.82%

1.82%

1.81%

130% AFR

1.99%

1.98%

1.98%

1.97%

150% AFR

2.29%

2.28%

2.27%

2.27%

175% AFR

2.68%

2.66%

2.65%

2.65%

Long-term

AFR

3.53%

3.50%

3.48%

3.47%

110% AFR

3.89%

3.85%

3.83%

3.82%

120% AFR

4.24%

4.20%

4.18%

4.16%

130% AFR

4.60%

4.55%

4.52%

4.51%

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## REV. RUL. 2010-29 TABLE 2 Adjusted AFR for December 2010

REV. RUL. 2010-29 TABLE 3 Rates Under Section 382 for December 2010

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

.49%

49%

49%

.49%

Mid-term adjusted AFR

1.63%

1.62%

1.62%

1.61%

Long-term adjusted AFR

3.67%

3.64%

3.62%

3.61%

Adjusted federal long-term rate for the current month
3.67%

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.)

3.67%

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## REV. RUL. 2010-29 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for December 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
7.58%

Appropriate percentage for the 30% present value low-income
housing credit
3.25%

## REV. RUL. 2010-29 TABLE 5

## Rate Under Section 7520 for December 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
1.8%

## REV. RUL. 2010-29 TABLE 6

Rates Under Sections 846 and 807

Applicable rate of interest for 2011 for purposes of sections 846
and 807
3.46%