Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2023-12 — 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 2023 (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 2023 for purposes of section 7872.
REV. RUL. 2023-12 TABLE 1 Applicable Federal Rates (AFR) for July 2023 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term | ||||
| AFR | 4.80% | 4.74% | 4.71% | 4.69% |
| 110% AFR | 5.28% | 5.21% | 5.18% | 5.15% |
| 120% AFR | 5.77% | 5.69% | 5.65% | 5.62% |
| 130% AFR | 6.25% | 6.16% | 6.11% | 6.08% |
| Mid-term | ||||
| AFR | 3.85% | 3.81% | 3.79% | 3.78% |
| 110% AFR | 4.23% | 4.19% | 4.17% | 4.15% |
| 120% AFR | 4.62% | 4.57% | 4.54% | 4.53% |
| 130% AFR | 5.01% | 4.95% | 4.92% | 4.90% |
| 150% AFR | 5.80% | 5.72% | 5.68% | 5.65% |
| 175% AFR | 6.78% | 6.67% | 6.62% | 6.58% |
| Long-term | ||||
| AFR | 3.98% | 3.94% | 3.92% | 3.91% |
| 110% AFR | 4.38% | 4.33% | 4.31% | 4.29% |
| 120% AFR | 4.79% | 4.73% | 4.70% | 4.68% |
| 130% AFR | 5.19% | 5.12% | 5.09% | 5.07% |
REV. RUL. 2023-12 TABLE 2 Adjusted AFR for July 2023 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term adjusted AFR | 3.63% | 3.60% | 3.58% | 3.57% |
| Mid-term adjusted AFR | 2.91% | 2.89% | 2.88% | 2.87% |
| Long-term adjusted AFR | 3.01% | 2.99% | 2.98% | 2.97% |
REV. RUL. 2023-12 TABLE 3 Rates Under Section 382 for July 2023
| Adjusted federal long-term rate for the current month | 3.01% |
| 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.) | 3.01% |
REV. RUL. 2023-12 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for July 2023
| 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 | 7.91% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.39% |
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 2023. See Rev. Rul. 2023-12, 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 2023. See Rev. Rul. 2023-12, 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 2023. See Rev. Rul. 2023-12, 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 2023. See Rev. Rul. 2023-12, 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 2023. See Rev. Rul. 2023-12, 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 2023. See Rev. Rul. 2023-12, 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 2023. See Rev. Rul. 2023-12, 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 2023. See Rev. Rul. 2023-12, page 1.
Section 7520.—Valuation Tables
The applicable federal mid-term rates are set forth for the month of July 2023. See Rev. Rul. 2023-12, 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 2023. See Rev. Rul. 2023-12, page 1.
Source: official text