rr-17-07.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, 642, 1288, 7520, 7872.)

Rev. Rul. 2017-07

This revenue ruling provides various prescribed rates for federal
income tax purposes for March 2017 (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. 2017-07 TABLE 1

Applicable Federal Rates (AFR) for March 2017

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 1.01% 1.01% 1.01% 1.01%
110% AFR 1.11% 1.11% 1.11% 1.11%
120% AFR 1.21% 1.21% 1.21% 1.21%
130% AFR 1.31% 1.31% 1.31% 1.31%

Mid-term

AFR 2.05% 2.04% 2.03% 2.03%
110% AFR 2.25% 2.24% 2.23% 2.23%
120% AFR 2.47% 2.45% 2.44% 2.44%
130% AFR 2.67% 2.65% 2.64% 2.64%
150% AFR 3.08% 3.06% 3.05% 3.04%
175% AFR 3.60% 3.57% 3.55% 3.54%

Long-term

AFR 2.78% 2.76% 2.75% 2.74%
110% AFR 3.06% 3.04% 3.03% 3.02%
120% AFR 3.34% 3.31% 3.30% 3.29%
130% AFR 3.62% 3.59% 3.57% 3.56%

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REV. RUL. 2017-07 TABLE 2

Adjusted AFR for March 2017

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR .75% .75% .75% . 75%

Mid-term
adjusted AFR 1.53% 1.52% 1.52% 1.52%

Long-term
adjusted AFR 2.06% 2.05% 2.04% 2.04%

REV. RUL. 2017-07 TABLE 3

Rates Under Section 382 for March 2017

Adjusted federal long-term rate for the current month 2.06%

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.) 2.09%

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REV. RUL. 2017-07 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for March 2017
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 percentage for the 70% present value low-income
housing credit 7.56%

Appropriate percentage for the 30% present value low-income
housing credit 3.24%

REV. RUL. 2017-07 TABLE 5

Rate Under Section 7520 for March 2017

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 2.4%