rr-22-12.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, 7872.)

Rev. Rul. 2022-1 2

This revenue ruling provides various prescribed rates for federal income tax
purposes for July 2022 (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 2022 for purposes of
section 7872.

2

REV. RUL. 2022-12 TABLE 1

Applicable Federal Rates (AFR) for July 2022

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 2.37% 2.36% 2.35% 2.35%
110% AFR 2.62% 2.60% 2.59% 2.59%
120% AFR 2.85% 2.83% 2.82% 2.81%
130% AFR 3.09% 3.07% 3.06% 3.05%

Mid-term

AFR 2.99% 2.97% 2.96% 2.95%
110% AFR 3.30% 3.27% 3.26% 3.25%
120% AFR 3.59% 3.56% 3.54% 3.53%
130% AFR 3.90% 3.86% 3.84% 3.83%
150% AFR 4.51% 4.46% 4.44% 4.42%
175% AFR 5.27% 5.20% 5.17% 5.14%

Long-term

AFR 3.22% 3.19% 3.18% 3.17%
110% AFR 3.54% 3.51% 3.49% 3.48%
120% AFR 3.87% 3.83% 3.81% 3.80%
130% AFR 4.19% 4.15% 4.13% 4.11%

3

REV. RUL. 2022-12 TABLE 2

Adjusted AFR for July 2022

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 1.80% 1.79% 1.79% 1.78%

Mid-term
adjusted AFR 2.27% 2.26% 2.25% 2.25%

Long-term
adjusted AFR 2.43% 2.42% 2.41% 2.41%

REV. RUL. 2022-12 TABLE 3

Rates Under Section 382 for July 2022

Adjusted federal long-term rate for the current month 2.43%

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.) 2.43%

REV. RUL. 2022-12 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for Ju ly 2022
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 7.72%

Appropriate percentage for the 30% present value low-income
housing credit 3.31%

4
REV. RUL. 2022-12 TABLE 5

Rate Under Section 7520 for July 2022

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 3.60%

REV. RUL. 2022-12 TABLE 6

Blended Annual Rate for 2022

Section 7872(e)(2) blended annual rate for 2022 1.40%