rr-21-21.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. 2021-21

This revenue ruling provides various prescribed rates for federal income tax
purposes for November 2021 (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. 2021-21 TABLE 1

Applicable Federal Rates (AFR) for November 2021

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.22% 0.22% 0.22% 0.22%
110% AFR 0.24% 0.24% 0.24% 0.24%
120% AFR 0.26% 0.26% 0.26% 0.26%
130% AFR 0.29% 0.29% 0.29% 0.29%

Mid-term

AFR 1.08% 1.08% 1.08% 1.08%
110% AFR 1.19% 1.19% 1.19% 1.19%
120% AFR 1.30% 1.30% 1.30% 1.30%
130% AFR 1.40% 1.40% 1.40% 1.40%
150% AFR 1.63% 1.62% 1.62% 1.61%
175% AFR 1.90% 1.89% 1.89% 1.88%

Long-term

AFR 1.86% 1.85% 1.85% 1.84%
110% AFR 2.05% 2.04% 2.03% 2.03%
120% AFR 2.23% 2.22% 2.21% 2.21%
130% AFR 2.42% 2.41% 2.40% 2.40%

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REV. RUL. 2021-21 TABLE 2

Adjusted AFR for November 2021

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.17% 0.17% 0.17% 0.17%

Mid-term
adjusted AFR 0.82% 0.82% 0.82% 0.82%

Long-term
adjusted AFR 1.40% 1.40% 1.40% 1.40%

REV. RUL. 2021-21 TABLE 3

Rates Under Section 382 for November 2021

Adjusted federal long-term rate for the current month 1.40%

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.) 1.40%

REV. RUL. 2021-21 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for November 2021
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 7.34%

Appropriate percentage for the 30% present value low-income
housing credit 3.14%

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REV. RUL. 2021-21 TABLE 5

Rate Under Section 7520 for November 2021

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 1.4%