rr-07-09.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, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520,
7872.)

## Rev. Rul. 2007-9

This revenue ruling provides various prescribed rates for federal income tax
purposes for February 2007 (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)(2) for buildings placed in service during the current month.
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. 2007-9 TABLE 1 Applicable Federal Rates (AFR) for February 2007

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

4.93%

4.87%

4.84%

4.82%

110% AFR

5.43%

5.36%

5.32%

5.30%

120% AFR

5.93%

5.84%

5.80%

5.77%

130% AFR

6.43%

6.33%

6.28%

6.25%

Mid-term

AFR

4.69%

4.64%

4.61%

4.60%

110% AFR

5.17%

5.10%

5.07%

5.05%

120% AFR

5.65%

5.57%

5.53%

5.51%

130% AFR

6.12%

6.03%

5.99%

5.96%

150% AFR

7.08%

6.96%

6.90%

6.86%

175% AFR

8.28%

8.12%

8.04%

7.99%

Long-term

AFR

4.86%

4.80%

4.77%

4.75%

110% AFR

5.35%

5.28%

5.25%

5.22%

120% AFR

5.84%

5.76%

5.72%

5.69%

130% AFR

6.34%

6.24%

6.19%

6.16%

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REV. RUL. 2007-9 TABLE 2 Adjusted AFR for February 2007

Period for Compounding

Monthly

Annual

Semiannual

Quarterly

Short-term adjusted AFR

3.46%

3.43%

3.42%

3.41%

Mid-term adjusted AFR

3.58%

3.55%

3.53%

3.52%

Long-term adjusted AFR

4.07%

4.03%

4.01%

4.00%

REV. RUL. 2007-9 TABLE 3
Rates Under Section 382 for February 2007

Adjusted federal long-term rate for the current month
4.07%

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.)
4.14%

## REV. RUL. 2007-9 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for February 2007

Appropriate percentage for the 70% present value low-income

housing credit

8.11%

Appropriate percentage for the 30% present value low-income

housing credit

3.48%

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# REV. RUL. 2007-9 TABLE 5 Rate Under Section 7520 for February 2007

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
5.6%