rr-10-18.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, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520,
7872.)

# Rev. Rul. 2010-18

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 2010 (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%. 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. Finally,
Table 6 contains the blended annual rate for 2010 for purposes of section
7872.

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# REV. RUL. 2010-18 TABLE 1 Applicable Federal Rates (AFR) for July 2010

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.61%

.61%

.61%

.61%

110% AFR

.67%

.67%

.67%

.67%

120% AFR

.73%

.73%

.73%

.73%

130% AFR

.79%

.79%

.79%

.79%

Mid-term

AFR

2.35%

2.34%

2.33%

2.33%

110% AFR

2.59%

2.57%

2.56%

2.56%

120% AFR

2.83%

2.81%

2.80%

2.79%

130% AFR

3.06%

3.04%

3.03%

3.02%

150% AFR

3.54%

3.51%

3.49%

3.48%

175% AFR

4.14%

4.10%

4.08%

4.07%

Long-term

AFR

3.94%

3.90%

3.88%

3.87%

110% AFR

4.34%

4.29%

4.27%

4.25%

120% AFR

4.73%

4.68%

4.65%

4.64%

130% AFR

5.13%

5.07%

5.04%

5.02%

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## REV. RUL. 2010-18 TABLE 2 Adjusted AFR for July 2010

REV. RUL. 2010-18 TABLE 3 Rates Under Section 382 for July 2010

Period for Compounding Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

.63%

.63%

.63%

.63%

Mid-term adjusted AFR

1.97%

1.96%

1.96%

1.95%

Long-term adjusted AFR

3.99%

3.95%

3.93%

3.92%

Adjusted federal long-term rate for the current month
3.99%

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.)
4.01%

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# REV. RUL. 2010-18 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for July 2010

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
7.73%

Appropriate percentage for the 30% present value low-income
housing credit
3.31%

# REV. RUL. 2010-18 TABLE 5 Rate Under Section 7520 for July 2010

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
2.8%

REV. RUL. 2010-18 TABLE 6
Blended Annual Rate for 2010

Section 7872(e)(2) blended annual rate for 2010
.59%