rr-22-03.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. 2022-3

This revenue ruling provides various prescribed rates for federal income tax
purposes for February 2022 (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
sect ion 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. 2022-3 TABLE 1

Applicable Federal Rates (AFR) for February 2022

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.59% 0.59% 0.59% 0.59%
110% AFR 0.65% 0.65% 0.65% 0.65%
120% AFR 0.71% 0.71% 0.71% 0.71%
130% AFR 0.77% 0.77% 0.77% 0.77%

Mid-term

AFR 1.40% 1.40% 1.40% 1.40%
110% AFR 1.55% 1.54% 1.54% 1.54%
120% AFR 1.69% 1.68% 1.68% 1.67%
130% AFR 1.83% 1.82% 1.82% 1.81%
150% AFR 2.11% 2.10% 2.09% 2.09%
175% AFR 2.47% 2.45% 2.44% 2.44%

Long-term

AFR 1.92% 1.91% 1.91% 1.90%
110% AFR 2.11% 2.10% 2.09% 2.09%
120% AFR 2.30% 2.29% 2.28% 2.28%
130% AFR 2.50% 2.48% 2.47% 2.47%

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REV. RUL. 2022-3 TABLE 2

Adjusted AFR for February 2022

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.45% 0.45% 0.45% 0.45%

Mid-term
adjusted AFR 1.06% 1.06% 1.06% 1.06%

Long-term
adjusted AFR 1.46% 1.45% 1.45% 1.45%

REV. RUL. 2022-3 TABLE 3

Rates Under Section 382 for February 2022

Adjusted federal long-term rate for the current month 1.46%

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.) 1.46%

REV. RUL. 2022-3 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for February 2022
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 7.38%

Appropriate percentage for the 30% present value low-income
housing credit 3.16%

REV. RUL. 2022-3 TABLE 5

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Rate Under Section 7520 for February 2022

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 1.6%