rr-11-11.pdf

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# Part I

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. 2011-11

This revenue ruling provides various prescribed rates for federal
income tax purposes for May 2011 (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. 2011-11 TABLE 1 Applicable Federal Rates (AFR) for May 2011

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.56%

.56%

56%

.56%

110% AFR

.62%

.62%

.62%

.62%

120% AFR

.67%

.67%

.67%

.67%

130% AFR

.73%

.73%

.73%

.73%

Mid-term

AFR

2.44%

2.43%

2.42%

2.42%

110% AFR

2.69%

2.67%

2.66%

2.66%

120% AFR

2.94%

2.92%

2.91%

2.90%

130% AFR

3.18%

3.16%

3.15%

3.14%

150% AFR

3.68%

3.65%

3.63%

3.62%

175% AFR

4.30%

4.25%

4.23%

4.21%

Long-term

AFR

4.19%

4.15%

4.13%

4.11%

110% AFR

4.62%

4.57%

4.54%

4.53%

120% AFR

5.04%

4.98%

4.95%

4.93%

130% AFR

5.47%

5.40%

5.36%

5.34%

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REV. RUL. 2011-11 TABLE 2 Adjusted AFR for May 2011

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

.73%

.73%

.73%

.73%

Mid-term adjusted AFR

1.98%

1.97%

1.97%

1.96%

Long-term adjusted AFR

4.30%

4.25%

4.23%

4.21%

REV. RUL. 2011-11 TABLE 3
Rates Under Section 382 for May 2011

Adjusted federal long-term rate for the current month
4.30%

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.)
4.55%

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# REV. RUL. 2011-11 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for May 2011

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
7.77%

Appropriate percentage for the 30% present value low-income
housing credit
3.33%

REV. RUL. 2011-11 TABLE 5
Rate Under Section 7520 for May 2011

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
3.0%