rr-08-50.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. 2008-50

This revenue ruling provides various prescribed rates for federal
income tax purposes for November 2008 (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, and before December 31, 2013, 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. 2008-50 TABLE 1 Applicable Federal Rates (AFR) for November 2008

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

1.63%

1.62%

1.62%

1.61%

110% AFR

1.79%

1.78%

1.78%

1.77%

120% AFR

1.95%

1.94%

1.94%

1.93%

130% AFR

2.12%

2.11%

2.10%

2.10%

Mid-term

AFR

2.97%

2.95%

2.94%

2.93%

110% AFR

3.28%

3.25%

3.24%

3.23%

120% AFR

3.57%

3.54%

3.52%

3.51%

130% AFR

3.88%

3.84%

3.82%

3.81%

150% AFR

4.48%

4.43%

4.41%

4.39%

175% AFR

5.23%

5.16%

5.13%

5.11%

Long-term

AFR

4.24%

4.20%

4.18%

4.16%

110% AFR

4.67%

4.62%

4.59%

4.58%

120% AFR

5.10%

5.04%

5.01%

4.99%

130% AFR

5.53%

5.46%

5.42%

5.40%

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## REV. RUL. 2008-50 TABLE 2 Adjusted AFR for November 2008

REV. RUL. 2008-50 TABLE 3 Rates Under Section 382 for November 2008

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

2.20%

2.19%

2.18%

2.18%

Mid-term adjusted AFR

3.35%

3.32%

3.31%

3.30%

Long-term adjusted AFR

4.94%

4.88%

4.85%

4.83%

Adjusted federal long-term rate for the current month
4.94%

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.)

4.94%

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## REV. RUL. 2008-50 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for November 2008

Note: Under Section 42(b)(2), the applicable percentage for non-federally
subsidized new buildings placed in service after July 30, 2008, and before
December 31, 2013, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income
housing credit
7.83%

Appropriate percentage for the 30% present value low-income
housing credit
3.36%

## REV. RUL. 2008-50 TABLE 5 Rate Under Section 7520 for November 2008

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
3.6%