rr-07-50.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. 2007-50

This revenue ruling provides various prescribed rates for federal income tax
purposes for August 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. 2007-50 TABLE 1 Applicable Federal Rates (AFR) for August 2007

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

5.00%

4.94%

4.91%

4.89%

110% AFR

5.50%

5.43%

5.39%

5.37%

120% AFR

6.02%

5.93%

5.89%

5.86%

130% AFR

6.52%

6.42%

6.37%

6.34%

Mid-term

AFR

5.09%

5.03%

5.00%

4.98%

110% AFR

5.61%

5.53%

5.49%

5.47%

120% AFR

6.13%

6.04%

6.00%

5.97%

130% AFR

6.65%

6.54%

6.49%

6.45%

150% AFR

7.69%

7.55%

7.48%

7.43%

175% AFR

8.99%

8.80%

8.71%

8.64%

Long-term

AFR

5.31%

5.24%

5.21%

5.18%

110% AFR

5.84%

5.76%

5.72%

5.69%

120% AFR

6.39%

6.29%

6.24%

6.21%

130% AFR

6.93%

6.81%

6.75%

6.72%

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REV. RUL. 2007-50 TABLE 2 Adjusted AFR for August 2007

Period for Compounding

Monthly

Annual

Semiannual

Quarterly

Short-term adjusted AFR

3.75%

3.72%

3.70%

3.69%

Mid-term adjusted AFR

3.97%

3.93%

3.91%

3.90%

Long-term adjusted AFR

4.50%

4.45%

4.43%

4.41%

REV. RUL. 2007-50 TABLE 3
Rates Under Section 382 for August 2007

Adjusted federal long-term rate for the current month
4.50%

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.)
4.50%

REV. RUL. 2007-50 TABLE 4

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

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

8.21%

Appropriate percentage for the 30% present value low-income

housing credit

3.52%

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# REV. RUL. 2007-50 TABLE 5 Rate Under Section 7520 for August 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
6.2%