Rev. Rul. 2016-09 - Rev. Rul. 2016–09
Rev. Rul. 2016–09
This revenue ruling provides various prescribed rates for federal income tax purposes for April 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. 2016–09 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for April 2016 | ||||
| --- | --- | --- | --- | --- |
| Period for Compounding | ||||
| --- | --- | --- | --- | --- |
| Annual | Semiannual | Quarterly | Monthly | |
| --- | --- | --- | --- | --- |
| Short-term | ||||
| AFR | .70% | .70% | .70% | .70% |
| 110% AFR | .77% | .77% | .77% | .77% |
| 120% AFR | .84% | .84% | .84% | .84% |
| 130% AFR | .91% | .91% | .91% | .91% |
| Mid-term | ||||
| AFR | 1.45% | 1.44% | 1.44% | 1.44% |
| 110% AFR | 1.59% | 1.58% | 1.58% | 1.57% |
| 120% AFR | 1.74% | 1.73% | 1.73% | 1.72% |
| 130% AFR | 1.88% | 1.87% | 1.87% | 1.86% |
| 150% AFR | 2.17% | 2.16% | 2.15% | 2.15% |
| 175% AFR | 2.54% | 2.52% | 2.51% | 2.51% |
| Long-term | ||||
| AFR | 2.25% | 2.24% | 2.23% | 2.23% |
| 110% AFR | 2.48% | 2.46% | 2.45% | 2.45% |
| 120% AFR | 2.71% | 2.69% | 2.68% | 2.68% |
| 130% AFR | 2.93% | 2.91% | 2.90% | 2.89% |
| REV. RUL. 2016–09 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for April 2016 | ||||
| --- | --- | --- | --- | --- |
| Period for Compounding | ||||
| --- | --- | --- | --- | --- |
| Annual | Semiannual | Quarterly | Monthly | |
| --- | --- | --- | --- | --- |
| Short-term adjusted AFR | .46% | .46% | .46% | .46% |
| Mid-term adjusted AFR | 1.12% | 1.12% | 1.12% | 1.12% |
| Long-term adjusted AFR | 2.25% | 2.24% | 2.23% | 2.23% |
| REV. RUL. 2016–09 TABLE 3 | |
|---|---|
| Rates Under Section 382 for April 2016 | |
| --- | --- |
| Adjusted federal long-term rate for the current month | 2.25% |
| 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.) | 2.53% |
| REV. RUL. 2016–09 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for April 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 | 7.42% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.18% |
| REV. RUL. 2016–09 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for April 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% |