Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2018-19 — Federal rates; adjusted federal rates; adjusted federal long-term rate, the long-term exempt rate, and the blended annual rate.
This revenue ruling provides various prescribed rates for federal income tax purposes for July 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%. 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 2018 for purposes of section 7872.
| REV. RUL. 2018–19 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for July 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | 2.38% | 2.37% | 2.36% | 2.36% |
| 110% AFR | 2.63% | 2.61% | 2.60% | 2.60% |
| 120% AFR | 2.86% | 2.84% | 2.83% | 2.82% |
| 130% AFR | 3.10% | 3.08% | 3.07% | 3.06% |
| Mid-term | ||||
| AFR | 2.87% | 2.85% | 2.84% | 2.83% |
| 110% AFR | 3.16% | 3.14% | 3.13% | 3.12% |
| 120% AFR | 3.45% | 3.42% | 3.41% | 3.40% |
| 130% AFR | 3.74% | 3.71% | 3.69% | 3.68% |
| 150% AFR | 4.33% | 4.28% | 4.26% | 4.24% |
| 175% AFR | 5.05% | 4.99% | 4.96% | 4.94% |
| Long-term | ||||
| AFR | 3.06% | 3.04% | 3.03% | 3.02% |
| 110% AFR | 3.37% | 3.34% | 3.33% | 3.32% |
| 120% AFR | 3.68% | 3.65% | 3.63% | 3.62% |
| 130% AFR | 3.99% | 3.95% | 3.93% | 3.92% |
| REV. RUL. 2018–19 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for July 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term adjusted AFR | 1.81% | 1.80% | 1.80% | 1.79% |
| Mid-term adjusted AFR | 2.17% | 2.16% | 2.15% | 2.15% |
| Long-term adjusted AFR | 2.32% | 2.31% | 2.30% | 2.30% |
| REV. RUL. 2018–19 TABLE 3 | |
|---|---|
| Rates Under Section 382 for July 2018 | |
| Adjusted federal long-term rate for the current month | 2.32% |
| 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.) | 2.32% |
| REV. RUL. 2018–19 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for July 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. 2018–19 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for July 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% |
| REV. RUL. 2018–19 TABLE 6 | |
|---|---|
| Blended Annual Rate for 2018 | |
| Section 7872(e)(2) blended annual rate for 2018 | 2.03% |
Source: official text