rr-19-16.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

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, 7872.)

Rev. Rul. 2019-16

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 2019 (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%. 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 2019 for purposes of section 7872.

2
REV. RUL. 2019-16 TABLE 1

Applicable Federal Rates (AFR) for July 2019

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 2.13% 2.12% 2.11% 2.11%
110% AFR 2.34% 2.33% 2.32% 2.32%
120% AFR 2.56% 2.54% 2.53% 2.53%
130% AFR 2.78% 2.76% 2.75% 2.74%

Mid-term

AFR 2.08% 2.07% 2.06% 2.06%
110% AFR 2.29% 2.28% 2.27% 2.27%
120% AFR 2.50% 2.48% 2.47% 2.47%
130% AFR 2.71% 2.69% 2.68% 2.68%
150% AFR 3.13% 3.11% 3.10% 3.09%
175% AFR 3.65% 3.62% 3.60% 3.59%

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%

3
REV. RUL. 2019-16 TABLE 2

Adjusted AFR for July 2019

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 1.62% 1.61% 1.61% 1.60%

Mid-term
adjusted AFR 1.58% 1.57% 1.57% 1.56%

Long-term
adjusted AFR 1.89% 1.88% 1.88% 1.87%

REV. RUL. 2019-16 TABLE 3

Rates Under Section 382 for July 2019

Adjusted federal long-term rate for the current month 1.89%

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.) 2.09%

REV. RUL. 2019-16 TABLE 4

4
Appropriate Percentages Under Section 42(b)(1) for July 2019
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 7.53%

Appropriate percentage for the 30% present value low-income
housing credit 3.23%

REV. RUL. 2019-16 TABLE 5

Rate Under Section 7520 for July 2019

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 2.6%

REV. RUL. 2019-16 TABLE 6

Blended Annual Rate for 2019

Section 7872(e)(2) blended annual rate for 2019 2.42%