Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2015-25 — Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate.
This revenue ruling provides various prescribed rates for federal income tax purposes for December 2015 (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, with respect to housing credit dollar amount allocations made before January 1, 2015, 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 2016 interest rate for purposes of sections 846 and 807.
| REV. RUL. 2015–25 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for December 2015 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | .56% | .56% | .56% | .56% |
| 110% AFR | .62% | .62% | .62% | .62% |
| 120% AFR | .67% | .67% | .67% | .67% |
| 130% AFR | .73% | .73% | .73% | .73% |
| Mid-term | ||||
| AFR | 1.68% | 1.67% | 1.67% | 1.66% |
| 110% AFR | 1.85% | 1.84% | 1.84% | 1.83% |
| 120% AFR | 2.01% | 2.00% | 2.00% | 1.99% |
| 130% AFR | 2.18% | 2.17% | 2.16% | 2.16% |
| 150% AFR | 2.53% | 2.51% | 2.50% | 2.50% |
| 175% AFR | 2.94% | 2.92% | 2.91% | 2.90% |
| Long-term | ||||
| AFR | 2.61% | 2.59% | 2.58% | 2.58% |
| 110% AFR | 2.87% | 2.85% | 2.84% | 2.83% |
| 120% AFR | 3.13% | 3.11% | 3.10% | 3.09% |
| 130% AFR | 3.40% | 3.37% | 3.36% | 3.35% |
| REV. RUL. 2015–25 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for December 2015 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term adjusted AFR | .48% | .48% | .48% | .48% |
| Mid-term adjusted AFR | 1.38% | 1.38% | 1.38% | 1.38% |
| Long-term adjusted AFR | 2.61% | 2.59% | 2.58% | 2.58% |
| REV. RUL. 2015–25 TABLE 3 | |
|---|---|
| Rates Under Section 382 for December 2015 | |
| Adjusted federal long-term rate for the current month | 2.61% |
| 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.) | 2.61% |
| REV. RUL. 2015–25 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for December 2015 | |
| Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2015 shall not be less than 9%. | |
| Appropriate percentage for the 70% present value low-income housing credit | 7.49% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.21% |
| REV. RUL. 2015–25 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for December 2015 | |
| 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 | 2.0% |
| REV. RUL. 2015–25 TABLE 6 | |
|---|---|
| Rates Under Sections 846 and 807 | |
| Applicable rate of interest for 2016 for purposes of sections 846 and 807 | 1.56% |
Source: official text