rr-17-17.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.)

Rev. Rul. 2017-17

This revenue ruling provides various prescribed rates for federal
income tax purposes for September 2017 (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, 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. 2017-17 TABLE 1

Applicable Federal Rates (AFR) for September 2017

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 1.29% 1.29% 1.29% 1.29%
110% AFR 1.43% 1.42% 1.42% 1.42%
120% AFR 1.56% 1.55% 1.55% 1.55%
130% AFR 1.69% 1.68% 1.68% 1.67%

Mid-term

AFR 1.94% 1.93% 1.93% 1.92%
110% AFR 2.13% 2.12% 2.11% 2.11%
120% AFR 2.33% 2.32% 2.31% 2.31%
130% AFR 2.53% 2.51% 2.50% 2.50%
150% AFR 2.92% 2.90% 2.89% 2.88%
175% AFR 3.41% 3.38% 3.37% 3.36%

Long-term

AFR 2.60% 2.58% 2.57% 2.57%
110% AFR 2.86% 2.84% 2.83% 2.82%
120% AFR 3.12% 3.10% 3.09% 3.08%
130% AFR 3.38% 3.35% 3.34% 3.33%

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REV. RUL. 2017-17 TABLE 2

Adjusted AFR for September 2017

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR .96% .96% .96% .96%

Mid-term
adjusted AFR 1.45% 1.44% 1.44% 1.44%

Long-term
adjusted AFR 1.93% 1.92% 1.92% 1.91%

REV. RUL. 2017-17 TABLE 3

Rates Under Section 382 for September 2017

Adjusted federal long-term rate for the current month 1.93%

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.) 1.93%

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REV. RUL. 2017-17 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for September 2017
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 7.52%

Appropriate percentage for the 30% present value low-income
housing credit 3.22%

REV. RUL. 2017-17 TABLE 5

Rate Under Section 7520 for September 2017

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 2.4%