rr-18-16.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

Section 1274 .-- Determination of Issue Price in the Case of Certain Debt Instruments
Issued for Property

(Also Sections 42, 280G, 382, 467, 468, 482, 483, 1288, 7520.)

# Rev. Rul. 2018-16

This revenue ruling provides various prescribed rates for federal
income tax purposes for June 2018 (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, 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.

<!-- PageBreak -->

# REV. RUL. 2018-16 TABLE 1 Applicable Federal Rates (AFR) for June 2018

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

2.34%

2.33%

2.32%

2.32%

110% AFR

2.58%

2.56%

2.55%

2.55%

120% AFR

2.82%

2.80%

2.79%

2.78%

130% AFR

3.05%

3.03%

3.02%

3.01%

Mid-term

AFR

2.86%

2.84%

2.83%

2.82%

110% AFR

3.14%

3.12%

3.11%

3.10%

120% AFR

3.44%

3.41%

3.40%

3.39%

130% AFR

3.72%

3.69%

3.67%

3.66%

150% AFR

4.31%

4.26%

4.24%

4.22%

175% AFR

5.03%

4.97%

4.94%

4.92%

Long-term

AFR

3.05%

3.03%

3.02%

3.01%

110% AFR

3.36%

3.33%

3.32%

3.31%

120% AFR

3.67%

3.64%

3.62%

3.61%

130% AFR

3.98%

3.94%

3.92%

3.91%

<!-- PageBreak -->

REV. RUL. 2018-16 TABLE 2 Adjusted AFR for June 2018

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

1.78%

1.77%

1.77%

1.76%

Mid-term adjusted AFR

2.17%

2.16%

2.15%

2.15%

Long-term adjusted AFR

2.31%

2.30%

2.29%

2.29%

REV. RUL. 2018-16 TABLE 3
Rates Under Section 382 for June 2018

Adjusted federal long-term rate for the current month
2.31%

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.)
2.31%

<!-- PageBreak -->

# REV. RUL. 2018-16 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for June 2018
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized
new buildings placed in service after July 30, 2008, shall not be less than 9%.

REV. RUL. 2018-16 TABLE 5 Rate Under Section 7520 for June 2018

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

7.68%

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

3.29%

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%