rr-09-38.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. 2009-38

This revenue ruling provides various prescribed rates for federal
income tax purposes for December 2009 (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, and before December 31, 2013, shall not be
less than 9%. 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. Finally,
Table 6 contains contains the 2010 interest rate for sections 846 and 807.

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REV. RUL. 2009-38 TABLE 1 Applicable Federal Rates (AFR) for December 2009

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.69%

.69%

.69%

.69%

110% AFR

.76%

.76%

.76%

.76%

120% AFR

.83%

.83%

.83%

.83%

130% AFR

90%

.90%

90%

.90%

Mid-term

AFR

2.64%

2.62%

2.61%

2.61%

110% AFR

2.90%

2.88%

2.87%

2.86%

120% AFR

3.16%

3.14%

3.13%

3.12%

130% AFR

3.44%

3.41%

3.40%

3.39%

150% AFR

3.97%

3.93%

3.91%

3.90%

175% AFR

4.64%

4.59%

4.56%

4.55%

Long-term

AFR

4.17%

4.13%

4.11%

4.09%

110% AFR

4.59%

4.54%

4.51%

4.50%

120% AFR

5.02%

4.96%

4.93%

4.91%

130% AFR

5.44%

5.37%

5.33%

5.31%

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REV. RUL. 2009-38 TABLE 2 Adjusted AFR for December 2009

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

.86%

.86%

.86%

.86%

Mid-term adjusted AFR

2.25%

2.24%

2.23%

2.23%

Long-term adjusted AFR

4.14%

4.10%

4.08%

4.07%

REV. RUL. 2009-38 TABLE 3
Rates Under Section 382 for December 2009

Adjusted federal long-term rate for the current month
4.14%

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.)
4.16%

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# REV. RUL. 2009-38 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for December 2009

Note: Under Section 42(b)(2), the applicable percentage for non-federally
subsidized new buildings placed in service after July 30, 2008, and before
December 31, 2013, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income
housing credit
7.79%

Appropriate percentage for the 30% present value low-income
housing credit
3.34%

# REV. RUL. 2009-38 TABLE 5 Rate Under Section 7520 for December 2009

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%

# REV. RUL. 2009-38 TABLE 6 Rates Under Sections 846 and 807

Applicable rate of interest for 2010 for purposes of sections 846
and 807
3.81%