rr-17-14.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. 2017-14

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 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%. 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 the blended annual
rate for 2017 for purposes of section 7872.

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REV. RUL. 2017-14 TABLE 1

Applicable Federal Rates (AFR) for July 2017

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 1.22% 1.22% 1.22% 1.22%
110% AFR 1.34% 1.34% 1.34% 1.34%
120% AFR 1.47% 1.46% 1.46% 1.46%
130% AFR 1.60% 1.59% 1.59% 1.58%

Mid-term

AFR 1.89% 1.88% 1.88% 1.87%
110% AFR 2.08% 2.07% 2.06% 2.06%
120% AFR 2.27% 2.26% 2.25% 2.25%
130% AFR 2.45% 2.44% 2.43% 2.43%
150% AFR 2.84% 2.82% 2.81% 2.80%
175% AFR 3.32% 3.29% 3.28% 3.27%

Long-term

AFR 2.60% 2.58% 2.57% 2.57%
110% AFR 2.86% 2.84% 2.83% 2.82%
120% AFR 3.12% 3.10% 3.09% 3.08%
130% AFR 3.38% 3.35% 3.34% 3.33%

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REV. RUL. 2017-14 TABLE 2

Adjusted AFR for July 2017

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR .91% .91% .91% . 91%

Mid-term
adjusted AFR 1.40% 1.40% 1.40% 1.40%

Long-term
adjusted AFR 1.93% 1.92% 1.92% 1.91%

REV. RUL. 2017-14 TABLE 3

Rates Under Section 382 for July 2017

Adjusted federal long-term rate for the current month 1.93%

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.) 2.04%

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REV. RUL. 2017-14 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for July 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 7.52%

Appropriate percentage for the 30% present value low-income
housing credit 3.22%

REV. RUL. 2017-14 TABLE 5

Rate Under Section 7520 for July 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 2.2%

REV. RUL. 2017-14 TABLE 6

Blended Annual Rate for 2017

Section 7872(e)(2) blended annual rate for 2017 1.09%