Rev. Rul. 2016-07 - Rev. Rul. 2016–07
Rev. Rul. 2016–07
This revenue ruling provides various prescribed rates for federal income tax purposes for March 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. 2016–07 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for March 2016 | ||||
| --- | --- | --- | --- | --- |
| Period for Compounding | ||||
| --- | --- | --- | --- | --- |
| Annual | Semiannual | Quarterly | Monthly | |
| --- | --- | --- | --- | --- |
| Short-term | ||||
| AFR | .65% | .65% | .65% | .65% |
| 110% AFR | .72% | .72% | .72% | .72% |
| 120% AFR | .78% | .78% | .78% | .78% |
| 130% AFR | .85% | .85% | .85% | .85% |
| Mid-term | ||||
| AFR | 1.48% | 1.47% | 1.47% | 1.47% |
| 110% AFR | 1.63% | 1.62% | 1.62% | 1.61% |
| 120% AFR | 1.77% | 1.76% | 1.76% | 1.75% |
| 130% AFR | 1.92% | 1.91% | 1.91% | 1.90% |
| 150% AFR | 2.22% | 2.21% | 2.20% | 2.20% |
| 175% AFR | 2.59% | 2.57% | 2.56% | 2.56% |
| Long-term | ||||
| AFR | 2.33% | 2.32% | 2.31% | 2.31% |
| 110% AFR | 2.57% | 2.55% | 2.54% | 2.54% |
| 120% AFR | 2.80% | 2.78% | 2.77% | 2.76% |
| 130% AFR | 3.04% | 3.02% | 3.01% | 3.00% |
| REV. RUL. 2016–07 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for March 2016 | ||||
| --- | --- | --- | --- | --- |
| Period for Compounding | ||||
| --- | --- | --- | --- | --- |
| Annual | Semiannual | Quarterly | Monthly | |
| --- | --- | --- | --- | --- |
| Short-term adjusted AFR | .55% | .55% | .55% | .55% |
| Mid-term adjusted AFR | 1.12% | 1.12% | 1.12% | 1.12% |
| Long-term adjusted AFR | 2.27% | 2.26% | 2.25% | 2.25% |
| REV. RUL. 2016–07 TABLE 3 | |
|---|---|
| Rates Under Section 382 for March 2016 | |
| --- | --- |
| Adjusted federal long-term rate for the current month | 2.27% |
| 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.) | 2.65% |
| REV. RUL. 2016–07 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for March 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 | 7.44% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.19% |
| REV. RUL. 2016–07 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for March 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% |