Rev. Rul. 2016-18
Revenue Ruling
Rev. Rul. 2016–18
Table of Contents
This revenue ruling provides various prescribed rates for federal income tax purposes for August 2016 (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. 2016–18 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for August 2016 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | .56% | .56% | .56% | .56% |
| 110% AFR | .62% | .62% | .62% | .62% |
| 120% AFR | .67% | .67% | .67% | .67% |
| 130% AFR | .73% | .73% | .73% | .73% |
| Mid-term | ||||
| AFR | 1.18% | 1.18% | 1.18% | 1.18% |
| 110% AFR | 1.30% | 1.30% | 1.30% | 1.30% |
| 120% AFR | 1.43% | 1.42% | 1.42% | 1.42% |
| 130% AFR | 1.54% | 1.53% | 1.53% | 1.53% |
| 150% AFR | 1.78% | 1.77% | 1.77% | 1.76% |
| 175% AFR | 2.08% | 2.07% | 2.06% | 2.06% |
| Long-term | ||||
| AFR | 1.90% | 1.89% | 1.89% | 1.88% |
| 110% AFR | 2.09% | 2.08% | 2.07% | 2.07% |
| 120% AFR | 2.28% | 2.27% | 2.26% | 2.26% |
| 130% AFR | 2.48% | 2.46% | 2.45% | 2.45% |
| REV. RUL. 2016–18 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for August 2016 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| adjusted AFR | .56% | .56% | .56% | .56% |
| Mid-term | ||||
| adjusted AFR | 1.03% | 1.03% | 1.03% | 1.03% |
| Long-term | ||||
| adjusted AFR | 1.82% | 1.81% | 1.81% | 1.80% |
| REV. RUL. 2016–18 TABLE 3 | |
|---|---|
| Rates Under Section 382 for August 2016 | |
| Adjusted federal long-term rate for the current month | 1.82% |
| 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.) | 2.15% |
| REV. RUL. 2016–18 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for August 2016 | |
| 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% |
| REV. RUL. 2016–18 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for August 2016 | |
| 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 | 1.4% |