rr-20-22.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, 7872.)

Rev. Rul. 2020-22

This revenue ruling provides various prescribed rates for federal income tax
purposes for November 2020 (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.

2
REV. RUL. 2020-22 TABLE 1

Applicable Federal Rates (AFR) for November 2020

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.13% 0.13% 0.13% 0.13%
110% AFR 0.14% 0.14% 0.14% 0.14%
120% AFR 0.16% 0.16% 0.16% 0.16%
130% AFR 0.17% 0.17% 0.17% 0.17%

Mid-term

AFR 0.39% 0.39% 0.39% 0.39%
110% AFR 0.43% 0.43% 0.43% 0.43%
120% AFR 0.47% 0.47% 0.47% 0.47%
130% AFR 0.51% 0.51% 0.51% 0.51%
150% AFR 0.59% 0.59% 0.59% 0.59%
175% AFR 0.68% 0.68% 0.68% 0.68%

Long-term

AFR 1.17% 1.17% 1.17% 1.17%
110% AFR 1.29% 1.29% 1.29% 1.29%
120% AFR 1.40% 1.40% 1.40% 1.40%
130% AFR 1.53% 1.52% 1.52% 1.52%

3
REV. RUL. 2020-22 TABLE 2

Adjusted AFR for November 2020

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.10% 0.10% 0.10% 0.10%

Mid-term
adjusted AFR 0.30% 0.30% 0.30% 0.30%

Long-term
adjusted AFR 0.89% 0.89% 0.89% 0.89%

REV. RUL. 2020-22 TABLE 3

Rates Under Section 382 for November 2020

Adjusted federal long-term rate for the current month .89%

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.) .89%

REV. RUL. 2020-22 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for November 2020
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%.

Appropriate percentage for the 70% present value low-income
housing credit 7.18%

Appropriate percentage for the 30% present value low-income
housing credit 3.08%

4
REV. RUL. 2020-22 TABLE 5

Rate Under Section 7520 for November 2020

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 .4%