rr-08-24.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. 2008-24

This revenue ruling provides various prescribed rates for federal
income tax purposes for May 2008 (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. 2008-24 TABLE 1 Applicable Federal Rates (AFR) for May 2008

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

1.64%

1.63%

1.63%

1.62%

110% AFR

1.80%

1.79%

1.79%

1.78%

120% AFR

1.97%

1.96%

1.96%

1.95%

130% AFR

2.13%

2.12%

2.11%

2.11%

Mid-term

AFR

2.74%

2.72%

2.71%

2.70%

110% AFR

3.01%

2.99%

2.98%

2.97%

120% AFR

3.29%

3.26%

3.25%

3.24%

130% AFR

3.57%

3.54%

3.52%

3.51%

150% AFR

4.12%

4.08%

4.06%

4.05%

175% AFR

4.82%

4.76%

4.73%

4.71%

Long-term

AFR

4.21%

4.17%

4.15%

4.13%

110% AFR

4.64%

4.59%

4.56%

4.55%

120% AFR

5.06%

5.00%

4.97%

4.95%

130% AFR

5.49%

5.42%

5.38%

5.36%

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REV. RUL. 2008-24 TABLE 2 Adjusted AFR for May 2008

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

2.07%

2.06%

2.05%

2.05%

Mid-term adjusted AFR

3.17%

3.15%

3.14%

3.13%

Long-term adjusted AFR

4.71%

4.66%

4.63%

4.62%

REV. RUL. 2008-24 TABLE 3
Rates Under Section 382 for May 2008

Adjusted federal long-term rate for the current month
4.71%

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.)
4.71%

# REV. RUL. 2008-24 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for May 2008

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

7.80%

Appropriate percentage for the 30% present value low-income

housing credit

3.34%

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# REV. RUL. 2008-24 TABLE 5 Rate Under Section 7520 for May 2008

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
3.2%