Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2019-4 — 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 February 2019 (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. 2019–04 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for February 2019 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | 2.57% | 2.55% | 2.54% | 2.54% |
| 110% AFR | 2.83% | 2.81% | 2.80% | 2.79% |
| 120% AFR | 3.08% | 3.06% | 3.05% | 3.04% |
| 130% AFR | 3.35% | 3.32% | 3.31% | 3.30% |
| Mid-term | ||||
| AFR | 2.63% | 2.61% | 2.60% | 2.60% |
| 110% AFR | 2.89% | 2.87% | 2.86% | 2.85% |
| 120% AFR | 3.15% | 3.13% | 3.12% | 3.11% |
| 130% AFR | 3.42% | 3.39% | 3.38% | 3.37% |
| 150% AFR | 3.96% | 3.92% | 3.90% | 3.89% |
| 175% AFR | 4.62% | 4.57% | 4.54% | 4.53% |
| Long-term | ||||
| AFR | 2.91% | 2.89% | 2.88% | 2.87% |
| 110% AFR | 3.21% | 3.18% | 3.17% | 3.16% |
| 120% AFR | 3.50% | 3.47% | 3.46% | 3.45% |
| 130% AFR | 3.80% | 3.76% | 3.74% | 3.73% |
| REV. RUL. 2019–04 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for February 2019 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term adjusted AFR | 1.95% | 1.94% | 1.94% | 1.93% |
| Mid-term adjusted AFR | 1.99% | 1.98% | 1.98% | 1.97% |
| Long-term adjusted AFR | 2.20% | 2.19% | 2.18% | 2.18% |
| REV. RUL. 2019–04 TABLE 3 | |
|---|---|
| Rates Under Section 382 for February 2019 | |
| Adjusted federal long-term rate for the current month | 2.20% |
| 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.) | 2.51% |
| REV. RUL. 2019–04 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for February 2019 | |
| 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 | 7.64% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.27% |
| REV. RUL. 2019–04 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for February 2019 | |
| 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