rr-07-23.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, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520,
7872.)

## Rev. Rul. 2007-23

This revenue ruling provides various prescribed rates for federal income tax
purposes for April 2007 (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)(2) for buildings placed in service during the current month.
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. 2007-23 TABLE 1 Applicable Federal Rates (AFR) for April 2007

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

4.90%

4.84%

4.81%

4.79%

110% AFR

5.39%

5.32%

5.29%

5.26%

120% AFR

5.89%

5.81%

5.77%

5.74%

130% AFR

6.39%

6.29%

6.24%

6.21%

Mid-term

AFR

4.61%

4.56%

4.53%

4.52%

110% AFR

5.08%

5.02%

4.99%

4.97%

120% AFR

5.54%

5.47%

5.43%

5.41%

130% AFR

6.02%

5.93%

5.89%

5.86%

150% AFR

6.96%

6.84%

6.78%

6.74%

175% AFR

8.14%

7.98%

7.90%

7.85%

Long-term

AFR

4.81%

4.75%

4.72%

4.70%

110% AFR

5.30%

5.23%

5.20%

5.17%

120% AFR

5.78%

5.70%

5.66%

5.63%

130% AFR

6.28%

6.18%

6.13%

6.10%

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REV. RUL. 2007-23 TABLE 2 Adjusted AFR for April 2007

Period for Compounding

Monthly

Annual

Semiannual

Quarterly

Short-term adjusted AFR

3.50%

3.47%

3.46%

3.45%

Mid-term adjusted AFR

3.65%

3.62%

3.60%

3.59%

Long-term adjusted AFR

4.04%

4.00%

3.98%

3.97%

REV. RUL. 2007-23 TABLE 3

Rates Under Section 382 for April 2007

Adjusted federal long-term rate for the current month
4.04%

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.)
4.18%

## REV. RUL. 2007-23 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for April 2007

Appropriate percentage for the 70% present value low-income housing credit

8.10%

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

3.47%

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# REV. RUL. 2007-23 TABLE 5 Rate Under Section 7520 for April 2007

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
5.6%