rr-24-09.pdf

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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. 2024-09

This revenue ruling provides various prescribed rates for federal income tax
purposes for May 2024 (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.

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REV. RUL. 2024-09 TABLE 1

Applicable Federal Rates (AFR) for May 2024

Period for Compounding
Annual Semiannual Quarte rly Monthly

Short-term

AFR 4.97% 4.91% 4.88% 4.86%
110% AFR 5.47% 5.40% 5.36% 5.34%
120% AFR 5.98 % 5.89% 5.85% 5.82%
130% AFR 6.48% 6.38 % 6.33 % 6.30%

Mid-term

AFR 4.42% 4.37% 4.35% 4.33%
110% AFR 4.87% 4.81% 4.78% 4.76%
120% AFR 5.31% 5.24% 5.21% 5.18%
130% AFR 5.76% 5.68% 5.64% 5.61%
15 0% AFR 6.67% 6.56% 6.51% 6.47%
175% AFR 7.80% 7.65% 7.58% 7.53%

Long-term

AFR 4.55 % 4.50% 4.47% 4.46 %
110% AFR 5.01% 4.95% 4.92% 4.90%
12 0% AFR 5.47% 5.40% 5.36% 5.34%
130% AFR 5.94% 5.85% 5.81% 5.78%

REV. RUL. 2024-09 TABLE 2

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Adjusted AFR for May 2024

Period for Compounding
Annual Semia nnual Quarterly Monthly
Short-term
adjusted AFR 3.76% 3.73% 3.71% 3.70%

Mid-term
adjusted AFR 3.35% 3.32% 3.31% 3.30%

Long-term
adjusted AFR 3.45% 3.42% 3.41% 3.40%

REV. RUL. 2024-09 TABLE 3

Rates Under Section 382 for May 2024

Adjusted federal long-term rate for the current month 3.45%

Long-term tax-exempt rate for ownership changes during the
current month (the highest of the adjusted federal long-term
rates for the current mon th and the prior two months.) 3.45%

REV. RUL. 2024-09 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for May 2024
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized
new buildings placed in service after Jul y 30, 2008, shall not be less than 9%.

Appropriate percentage for t he 70% present value low-income
housing credit 8.04%

Appropriate percentage for the 30% present value low-income
housing credit 3.45%

REV. RUL. 2024-09 TABLE 5

Rate Under Section 7520 for May 2024

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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 5.40%