Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate.

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This revenue ruling provides various prescribed rates for federal income tax purposes for June 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.

REV. RUL. 2018–16 TABLE 1
Applicable Federal Rates (AFR) for June 2018
Period for Compounding
	Annual	Semiannual	Quarterly	Monthly
Short-term
AFR	2.34%	2.33%	2.32%	2.32%
110% AFR	2.58%	2.56%	2.55%	2.55%
120% AFR	2.82%	2.80%	2.79%	2.78%
130% AFR	3.05%	3.03%	3.02%	3.01%
Mid-term
AFR	2.86%	2.84%	2.83%	2.82%
110% AFR	3.14%	3.12%	3.11%	3.10%
120% AFR	3.44%	3.41%	3.40%	3.39%
130% AFR	3.72%	3.69%	3.67%	3.66%
150% AFR	4.31%	4.26%	4.24%	4.22%
175% AFR	5.03%	4.97%	4.94%	4.92%
Long-term
AFR	3.05%	3.03%	3.02%	3.01%
110% AFR	3.36%	3.33%	3.32%	3.31%
120% AFR	3.67%	3.64%	3.62%	3.61%
130% AFR	3.98%	3.94%	3.92%	3.91%

REV. RUL. 2018–16 TABLE 2
Adjusted AFR for June 2018
Period for Compounding
	Annual	Semiannual	Quarterly	Monthly
Short-term adjusted AFR	1.78%	1.77%	1.77%	1.76%
Mid-term adjusted AFR	2.17%	2.16%	2.15%	2.15%
Long-term adjusted AFR	2.31%	2.30%	2.29%	2.29%

REV. RUL. 2018–16 TABLE 3
Rates Under Section 382 for June 2018
Adjusted federal long-term rate for the current month	2.31%
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.)	2.31%

REV. RUL. 2018–16 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for June 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	7.68%
Appropriate percentage for the 30% present value low-income housing credit	3.29%

REV. RUL. 2018–16 TABLE 5
Rate Under Section 7520 for June 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	3.4%

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