Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2021-12 — Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term tax exempt rate.
This revenue ruling provides various prescribed rates for federal income tax purposes for July 2021 (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 2021 for purposes of section 7872.
REV. RUL. 2021-12 TABLE 1 Applicable Federal Rates (AFR) for July 2021 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term | ||||
| AFR | 0.12% | 0.12% | 0.12% | 0.12% |
| 110% AFR | 0.13% | 0.13% | 0.13% | 0.13% |
| 120% AFR | 0.14% | 0.14% | 0.14% | 0.14% |
| 130% AFR | 0.16% | 0.16% | 0.16% | 0.16% |
| Mid-term | ||||
| AFR | 1.00% | 1.00% | 1.00% | 1.00% |
| 110% AFR | 1.10% | 1.10% | 1.10% | 1.10% |
| 120% AFR | 1.20% | 1.20% | 1.20% | 1.20% |
| 130% AFR | 1.30% | 1.30% | 1.30% | 1.30% |
| 150% AFR | 1.51% | 1.50% | 1.50% | 1.50% |
| 175% AFR | 1.76% | 1.75% | 1.75% | 1.74% |
| Long-term | ||||
| AFR | 2.07% | 2.06% | 2.05% | 2.05% |
| 110% AFR | 2.28% | 2.27% | 2.26% | 2.26% |
| 120% AFR | 2.49% | 2.47% | 2.46% | 2.46% |
| 130% AFR | 2.70% | 2.68% | 2.67% | 2.67% |
REV. RUL. 2021-12 TABLE 2 Adjusted AFR for July 2021 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term adjusted AFR | 0.09% | 0.09% | 0.09% | 0.09% |
| Mid-term adjusted AFR | 0.76% | 0.76% | 0.76% | 0.76% |
| Long-term adjusted AFR | 1.57% | 1.56% | 1.56% | 1.55% |
REV. RUL. 2021-12 TABLE 3 Rates Under Section 382 for July 2021
| Adjusted federal long-term rate for the current month | 1.57% |
| 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.) | 1.64% |
REV. RUL. 2021-12 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for July 2021
| 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 | 7.35% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.15% |
Section 42.—Low-Income Housing Credit
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 280G.—Golden Parachute Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change
The adjusted applicable federal long-term rate is set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 467.—Certain Payments for the Use of Property or Services
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs
The applicable federal short-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 482.—Allocation of Income and Deductions Among Taxpayers
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 483.—Interest on Certain Deferred Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 7520.—Valuation Tables
The applicable federal mid-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Section 7872.—Treatment of Loans With Below-Market Interest Rates
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.
Source: official text