Rev. Rul. 2016-27
Revenue Ruling
Rev. Rul. 2016–27
Table of Contents
This revenue ruling provides various prescribed rates for federal income tax purposes for December 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). The rates in Table 2 have been determined in accordance with § 1.1288–1. See T.D. 9763, 81 FR 24482 (April 26, 2016). 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 2017 interest rate for purposes of sections 846 and 807.
REV. RUL. 2016–27 TABLE 1 | ||||
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Applicable Federal Rates (AFR) for December 2016 | ||||
Period for Compounding | ||||
Annual | Semiannual | Quarterly | Monthly | |
Short-term | ||||
AFR | .74% | .74% | .74% | .74% |
110% AFR | .81% | .81% | .81% | .81% |
120% AFR | .89% | .89% | .89% | .89% |
130% AFR | .96% | .96% | .96% | .96% |
Mid-term | ||||
AFR | 1.47% | 1.46% | 1.46% | 1.46% |
110% AFR | 1.62% | 1.61% | 1.61% | 1.60% |
120% AFR | 1.76% | 1.75% | 1.75% | 1.74% |
130% AFR | 1.91% | 1.90% | 1.90% | 1.89% |
150% AFR | 2.20% | 2.19% | 2.18% | 2.18% |
175% AFR | 2.58% | 2.56% | 2.55% | 2.55% |
Long-term | ||||
AFR | 2.26% | 2.25% | 2.24% | 2.24% |
110% AFR | 2.50% | 2.48% | 2.47% | 2.47% |
120% AFR | 2.72% | 2.70% | 2.69% | 2.68% |
130% AFR | 2.95% | 2.93% | 2.92% | 2.91% |
REV. RUL. 2016–27 TABLE 2 | ||||
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Adjusted AFR for December 2016 | ||||
Period for Compounding | ||||
Annual | Semiannual | Quarterly | Monthly | |
Short-term adjusted AFR | .55% | .55% | .55% | .55% |
Mid-term adjusted AFR | 1.09% | 1.09% | 1.09% | 1.09% |
Long-term adjusted AFR | 1.68% | 1.67% | 1.67% | 1.66% |
REV. RUL. 2016–27 TABLE 3 | |
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Rates Under Section 382 for December 2016 | |
Adjusted federal long-term rate for the current month | 1.68% |
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.) | 1.68% |
REV. RUL. 2016–27 TABLE 4 | |
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Appropriate Percentages Under Section 42(b)(1) for December 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 | 7.43% |
Appropriate percentage for the 30% present value low-income housing credit | 3.18% |
REV. RUL. 2016–27 TABLE 5 | |
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Rate Under Section 7520 for December 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 | 1.8% |