rr-21-18.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. 2021-18

This revenue ruling provides various prescribed rates for federal income tax
purposes for October 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
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.

REV. RUL. 2021-18 TABLE 1

2

Applicable Federal Rates (AFR) for October 2021

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 0.18% 0.18% 0.18% 0.18%
110% AFR 0.20% 0.20% 0.20% 0.20%
120% AFR 0.22% 0.22% 0.22% 0.22%
130% AFR 0.23% 0.23% 0.23% 0.23%

Mid-term

AFR 0.91% 0.91% 0.91% 0.91%
110% AFR 1.00% 1.00% 1.00% 1.00%
120% AFR 1.09% 1.09% 1.09% 1.09%
130% AFR 1.18% 1.18% 1.18% 1.18%
150% AFR 1.37% 1.37% 1.37% 1.37%
175% AFR 1.60% 1.59% 1.59% 1.58%

Long-term

AFR 1.74% 1.73% 1.73% 1.72%
110% AFR 1.91% 1.90% 1.90% 1.89%
120% AFR 2.09% 2.08% 2.07% 2.07%
130% AFR 2.26% 2.25% 2.24% 2.24%

REV. RUL. 2021-18 TABLE 2

3
Adjusted AFR for October 2021

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 0.14% 0.14% 0.14% 0.14%

Mid-term
adjusted AFR 0.69% 0.69% 0.69% 0.69%

Long-term
adjusted AFR 1.31% 1.31% 1.31% 1.31%

REV. RUL. 2021-18 TABLE 3

Rates Under Section 382 for October 2021

Adjusted federal long-term rate for the current month 1.31%

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.) 1.44%

REV. RUL. 2021-18 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for October 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 7.30%

Appropriate percentage for the 30% present value low-income
housing credit 3.13%

REV. RUL. 2021-18 TABLE 5

Rate Under Section 7520 for October 2021

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 1.0%