rr-18-09.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. 2018-09

This revenue ruling provides various prescribed rates for federal
income tax purposes for April 2018 (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. 2018-09 TABLE 1

Applicable Federal Rates (AFR) for April 2018

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 2.12% 2.11% 2.10% 2.10%
110% AFR 2.33% 2.32% 2.31% 2.31%
120% AFR 2.55% 2.53% 2.52% 2.52%
130% AFR 2.76% 2.74% 2.73% 2.72%

Mid-term

AFR 2.72% 2.70% 2.69% 2.68%
110% AFR 2.99% 2.97% 2.96% 2.95%
120% AFR 3.27% 3.24% 3.23% 3.22%
130% AFR 3.54% 3.51% 3.49% 3.48%
150% AFR 4.09% 4.05% 4.03% 4.02%
175% AFR 4.79% 4.73% 4.70% 4.68%

Long-term

AFR 3.04% 3.02% 3.01% 3.00%
110% AFR 3.35% 3.32% 3.31% 3.30%
120% AFR 3.65% 3.62% 3.60% 3.59%
130% AFR 3.97% 3.93% 3.91% 3.90%

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REV. RUL. 2018-09 TABLE 2

Adjusted AFR for April 2018

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 1.61% 1.60% 1.60% 1.59%

Mid-term
adjusted AFR 2.06% 2.05% 2.04% 2 .04%

Long-term
adjusted AFR 2.30% 2.29% 2.28% 2.28%

REV. RUL. 2018-09 TABLE 3

Rates Under Section 382 for April 2018

Adjusted federal long-term rate for the current month 2.30%

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.) 2.30%

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REV. RUL. 2018-09 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for April 2018
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 7.66%

Appropriate percentage for the 30% present value low-income
housing credit 3.28%

REV. RUL. 2018-09 TABLE 5

Rate Under Section 7520 for April 2018

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 3.2%