Rev. Rul. 2018-05 - Rev. Rul. 2018–05
Rev. Rul. 2018–05
This revenue ruling provides various prescribed rates for federal income tax purposes for February 2018 (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. 2018–05 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for February 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | 1.81% | 1.80% | 1.80% | 1.79% |
| 110% AFR | 1.99% | 1.98% | 1.98% | 1.97% |
| 120% AFR | 2.17% | 2.16% | 2.15% | 2.15% |
| 130% AFR | 2.35% | 2.34% | 2.33% | 2.33% |
| Mid-term | ||||
| AFR | 2.31% | 2.30% | 2.29% | 2.29% |
| 110% AFR | 2.55% | 2.53% | 2.52% | 2.52% |
| 120% AFR | 2.78% | 2.76% | 2.75% | 2.74% |
| 130% AFR | 3.01% | 2.99% | 2.98% | 2.97% |
| 150% AFR | 3.48% | 3.45% | 3.44% | 3.43% |
| 175% AFR | 4.07% | 4.03% | 4.01% | 4.00% |
| Long-term | ||||
| AFR | 2.66% | 2.64% | 2.63% | 2.63% |
| 110% AFR | 2.92% | 2.90% | 2.89% | 2.88% |
| 120% AFR | 3.20% | 3.17% | 3.16% | 3.15% |
| 130% AFR | 3.46% | 3.43% | 3.42% | 3.41% |
| REV. RUL. 2018–05 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for February 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term adjusted AFR | 1.34% | 1.34% | 1.34% | 1.34% |
| Mid-term adjusted AFR | 1.72% | 1.71% | 1.71% | 1.70% |
| Long-term adjusted AFR | 1.97% | 1.96% | 1.96% | 1.95% |
| REV. RUL. 2018–05 TABLE 3 | |
|---|---|
| Rates Under Section 382 for February 2018 | |
| Adjusted federal long-term rate for the current month | 1.97% |
| 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.) | 1.97% |
| REV. RUL. 2018–05 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for February 2018 | |
| 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 | 7.57% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.25% |
| REV. RUL. 2018–05 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for February 2018 | |
| 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 | 2.8% |