Rev. Rul. 2017-02 - Rev. Rul. 2017–02
Rev. Rul. 2017–02
This revenue ruling provides various prescribed rates for federal income tax purposes for January 2017 (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 deemed rate of return for transfers made during calendar year 2017 to pooled income funds described in section 642(c)(5) that have been in existence for less than 3 taxable years immediately preceding the taxable year in which the transfer was made.
| REV. RUL. 2017–02 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for January 2017 | ||||
| --- | --- | --- | --- | --- |
| Period for Compounding | ||||
| --- | --- | --- | --- | --- |
| Annual | Semiannual | Quarterly | Monthly | |
| --- | --- | --- | --- | --- |
| Short-term | ||||
| AFR | .96% | .96% | .96% | .96% |
| 110% AFR | 1.06% | 1.06% | 1.06% | 1.06% |
| 120% AFR | 1.15% | 1.15% | 1.15% | 1.15% |
| 130% AFR | 1.25% | 1.25% | 1.25% | 1.25% |
| Mid-term | ||||
| AFR | 1.97% | 1.96% | 1.96% | 1.95% |
| 110% AFR | 2.17% | 2.16% | 2.15% | 2.15% |
| 120% AFR | 2.36% | 2.35% | 2.34% | 2.34% |
| 130% AFR | 2.57% | 2.55% | 2.54% | 2.54% |
| 150% AFR | 2.96% | 2.94% | 2.93% | 2.92% |
| 175% AFR | 3.46% | 3.43% | 3.42% | 3.41% |
| Long-term | ||||
| AFR | 2.75% | 2.73% | 2.72% | 2.71% |
| 110% AFR | 3.02% | 3.00% | 2.99% | 2.98% |
| 120% AFR | 3.31% | 3.28% | 3.27% | 3.26% |
| 130% AFR | 3.58% | 3.55% | 3.53% | 3.52% |
| REV. RUL. 2017–02 TABLE 2 | | | | | | --- | --- | --- | --- | --- | --- | --- | --- |
| Adjusted AFR for January 2017 | | | | | | --- | --- | --- | --- | --- | --- | --- | --- |
| Period for Compounding | | | | | | --- | --- | --- | --- | --- | --- | --- | --- |
| Annual | Semiannual | Quarterly | Monthly | ||||
|---|---|---|---|---|---|---|---|
| Short-term adjusted AFR | .71% | .71% | .71% | .71% | |||
| Mid-term adjusted AFR | 1.47% | 1.46% | 1.46% | 1.46% | |||
| Long-term adjusted AFR | 2.04% | 2.03% | 2.02% | 2.02% |
| REV. RUL. 2017–02 TABLE 3 | |
|---|---|
| Rates Under Section 382 for January 2017 | |
| --- | --- |
| Adjusted federal long-term rate for the current month | 2.04% |
| 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.) | 2.04% |
| REV. RUL. 2017–02 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for January 2017 | |
| --- | --- |
| 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 | 7.54% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.23% |
| REV. RUL. 2017–02 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for January 2017 | |
| --- | --- |
| 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 | 2.4% |
| REV. RUL. 2017–02 TABLE 6 | |
|---|---|
| Deemed Rate for Transfers to New Pooled Income Funds During 2017 | |
| --- | --- |
| Deemed rate of return for transfers during 2017 to pooled income funds that have been in existence for less than 3 taxable years | 1.2% |