rr-20-11.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, 1288, 7520, 7872.)

Rev. Rul. 2020-11

This revenue ruling provides various prescribed rates for federal income tax
purposes for May 2020 (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.

REV. RUL. 2020-11 TABLE 1

2
Applicable Federal Rates (AFR) for May 2020

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.25% 0.25% 0.25% 0.25%
110% AFR 0.28% 0.28% 0.28% 0.28%
120% AFR 0.30% 0.30% 0.30% 0.30%
130% AFR 0.33% 0.33% 0.33% 0.33%

Mid-term

AFR 0.58% 0.58% 0.58% 0.58%
110% AFR 0.64% 0.64% 0.64% 0.64%
120% AFR 0.70% 0.70% 0.70% 0.70%
130% AFR 0.75% 0.75% 0.75% 0.75%
150% AFR 0.87% 0.87% 0.87% 0.87%
175% AFR 1.02% 1.02% 1.02% 1.02%

Long-term

AFR 1.15% 1.15% 1.15% 1.15%
110% AFR 1.27% 1.27% 1.27% 1.27%
120% AFR 1.38% 1.38% 1.38% 1.38%
130% AFR 1.51% 1.50% 1.50% 1.50%

REV. RUL. 2020-11 TABLE 2

Adjusted AFR for May 2020

3

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.19% 0.19% 0.19% 0.19%

Mid-term
adjusted AFR 0.44% 0.44% 0.44% 0.44%

Long-term
adjusted AFR 0.87% 0.87% 0.87% 0.87%

REV. RUL. 2020-11 TABLE 3

Rates Under Section 382 for May 2020

Adjusted federal long-term rate for the current month .87%

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.) 1.47%

REV. RUL. 2020-11 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for May 2020
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 7.20%

Appropriate percentage for the 30% present value low-income
housing credit 3.08%

REV. RUL. 2020-11 TABLE 5

Rate Under Section 7520 for May 2020

4
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 . 8%