rr-23-03.pdf

us-irs-revenue-rulings-rr-23-03rr-23-03.pdfGuidance

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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, 467, 468, 482, 483, 1288, 7520, 7872.)
Rev. Rul. 2023-3
This revenue ruling provides various prescribed rates for federal income tax
purposes for February 2023 (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
secti on 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 ra te 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, unde r 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. 2023-3 TABLE 1
Applicable Federal Rates (AFR) for February 2023
Annual
Period for Compounding
Semiannual Quarterly Monthly
Short-term
AFR
110% AFR
120% AFR
130% AFR
4.47%
4.92%
5.37%
5.83%
4.42%
4.86%
5.30%
5.75%
4.40%
4.83%
5. 27%
5.71%
4.38%
4.81%
5.24%
5.68%
Mid-term
AFR
110% AFR
120% AFR
130% AFR
150% AFR
175% AFR
3.82%
4.20%
4.59%
4.97%
5.75%
6.73%
3.78%
4.16%
4.54%
4.91%
5.67%
6.62%
3.76%
4.14%
4.51%
4.88%
5.63%
6.57%
3.75%
4.12%
4.50%
4.86%
5.60%
6.53%
Long-term
AFR
110% AFR
120% AFR
130% AFR
3.86%
4. 24%
4.63%
5.03%
3.82%
4.20%
4.58%
4.97%
3.80%
4.18%
4.55%
4.94%
3.79%
4.16%
4.54%
4.92%

3
REV. RUL. 2023-3 TABLE 2
Adjusted AFR for February 2023
Short-term
adjusted AFR
Period for Compounding
Annual Semiannual Quarterly
3.39% 3.36% 3.35%
Monthly
3.34%
Mid-term
adjusted AFR 2.89% 2.87% 2.86% 2.85%
Long-term
adjusted AFR 2.92% 2.90% 2.89% 2.88%
REV. RUL. 2023-3 TABLE 3
Rates Under Section 382 for February 2023
Adjusted federal long-term rate for the current month 2.92%
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. 29%
REV. RUL. 2023-3 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for February 2023
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 percenta ge for the 70% present value low-income
housing credit 7. 89%
Appropriate percentage for the 30% present value low-income
housing credit 3.38%
REV. RUL. 2023-3 TABLE 5

4
Rate Under Section 7520 for February 2023
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 4.60%

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