rr-22-14.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, 1288, 7520, 7872.)

Rev. Rul. 2022-1 4

This revenue ruling provides various prescribed rates for federal income tax
purposes for August 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
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. 2022-14 TABLE 1

Applicable Federal Rates (AFR) for August 2022

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 2.88% 2.86% 2.85% 2.84%
110% AFR 3.17% 3.15% 3.14% 3.13%
120% AFR 3.46% 3.43% 3.42% 3.41%
130% AFR 3.75% 3.72% 3.70% 3.69%

Mid-term

AFR 3.15% 3.13% 3.12% 3.11%
110% AFR 3.47% 3.44% 3.43% 3.42%
120% AFR 3.80% 3.76% 3.74% 3.73%
130% AFR 4.11% 4.07% 4.05% 4.04%
150% AFR 4.76% 4.70% 4.67% 4.65%
175% AFR 5.56% 5.48% 5.44% 5.42%

Long-term

AFR 3.35% 3.32% 3.31% 3.30%
110% AFR 3.68% 3.65% 3.63% 3.62%
120% AFR 4.02% 3.98% 3.96% 3.95%
130% AFR 4.37% 4.32% 4.30% 4.28%

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REV. RUL. 2022-14 TABLE 2

Adjusted AFR for August 2022

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 2.18% 2.17% 2.16% 2.16%

Mid-term
adjusted AFR 2.39% 2.38% 2.37% 2.37%

Long-term
adjusted AFR 2.54% 2.52% 2.51% 2.51%

REV. RUL. 2022-14 TABLE 3

Rates Under Section 382 for August 2022

Adjusted federal long-term rate for the current month 2.54%

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.) 2.54%

REV. RUL. 2022-14 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for August 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 7.75%

Appropriate percentage for the 30% present value low-income
housing credit 3.32%

REV. RUL. 2022-14 TABLE 5

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Rate Under Section 7520 for August 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 3.80%