Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2018-9 — 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 April 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. 2018–09 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for April 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | 2.12% | 2.11% | 2.10% | 2.10% |
| 110% AFR | 2.33% | 2.32% | 2.31% | 2.31% |
| 120% AFR | 2.55% | 2.53% | 2.52% | 2.52% |
| 130% AFR | 2.76% | 2.74% | 2.73% | 2.72% |
| Mid-term | ||||
| AFR | 2.72% | 2.70% | 2.69% | 2.68% |
| 110% AFR | 2.99% | 2.97% | 2.96% | 2.95% |
| 120% AFR | 3.27% | 3.24% | 3.23% | 3.22% |
| 130% AFR | 3.54% | 3.51% | 3.49% | 3.48% |
| 150% AFR | 4.09% | 4.05% | 4.03% | 4.02% |
| 175% AFR | 4.79% | 4.73% | 4.70% | 4.68% |
| Long-term | ||||
| AFR | 3.04% | 3.02% | 3.01% | 3.00% |
| 110% AFR | 3.35% | 3.32% | 3.31% | 3.30% |
| 120% AFR | 3.65% | 3.62% | 3.60% | 3.59% |
| 130% AFR | 3.97% | 3.93% | 3.91% | 3.90% |
| REV. RUL. 2018–09 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for April 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term adjusted AFR | 1.61% | 1.60% | 1.60% | 1.59% |
| Mid-term adjusted AFR | 2.06% | 2.05% | 2.04% | 2.04% |
| Long-term adjusted AFR | 2.30% | 2.29% | 2.28% | 2.28% |
| REV. RUL. 2018–09 TABLE 3 | |
|---|---|
| Rates Under Section 382 for April 2018 | |
| Adjusted federal long-term rate for the current month | 2.30% |
| 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.) | 2.30% |
| REV. RUL. 2018–09 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for April 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 | 7.66% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.28% |
| REV. RUL. 2018–09 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for April 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 | 3.2% |
Source: official text