rr-17-20.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. 2017-20

This revenue ruling provides various prescribed rates for federal
income tax purposes for October 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. 2017-20 TABLE 1

Applicable Federal Rates (AFR) for October 2017

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 1.27% 1.27% 1.27% 1.27%
110% AFR 1.40% 1.40% 1.40% 1.40%
120% AFR 1.53% 1.52% 1.52% 1.52%
130% AFR 1.66% 1.65% 1.65% 1.64%

Mid-term

AFR 1.85% 1.84% 1.84% 1.83%
110% AFR 2.03% 2.02% 2.01% 2.01%
120% AFR 2.22% 2.21% 2.20% 2.20%
130% AFR 2.40% 2.39% 2.38% 2.38%
150% AFR 2.78% 2.76% 2.75% 2.74%
175% AFR 3.25% 3.22% 3.21% 3.20%

Long-term

AFR 2.50% 2.48% 2.47% 2.47%
110% AFR 2.75% 2.73% 2.72% 2.71%
120% AFR 3.00% 2.98% 2.97% 2.96%
130% AFR 3.25% 3.22% 3.21% 3.20%

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REV. RUL. 2017-20 TABLE 2

Adjusted AFR for October 2017

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR .94% .94% .94% .94%

Mid-term
adjusted AFR 1.37% 1.37% 1.37% 1.37%

Long-term
adjusted AFR 1.85% 1.84% 1.84% 1.83%

REV. RUL. 2017-20 TABLE 3

Rates Under Section 382 for October 2017

Adjusted federal long-term rate for the current month 1.85%

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. 2017-20 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for October 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 7.50%

Appropriate percentage for the 30% present value low-income
housing credit 3.21%

REV. RUL. 2017-20 TABLE 5

Rate Under Section 7520 for October 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 2.2%