Rev. Rul. 2018-23 - Rev. Rul. 2018–23
Rev. Rul. 2018–23
This revenue ruling provides various prescribed rates for federal income tax purposes for September 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. 2018–23 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for September 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | 2.51% | 2.49% | 2.48% | 2.48% |
| 110% AFR | 2.76% | 2.74% | 2.73% | 2.72% |
| 120% AFR | 3.01% | 2.99% | 2.98% | 2.97% |
| 130% AFR | 3.27% | 3.24% | 3.23% | 3.22% |
| Mid-term | ||||
| AFR | 2.86% | 2.84% | 2.83% | 2.82% |
| 110% AFR | 3.14% | 3.12% | 3.11% | 3.10% |
| 120% AFR | 3.44% | 3.41% | 3.40% | 3.39% |
| 130% AFR | 3.72% | 3.69% | 3.67% | 3.66% |
| 150% AFR | 4.31% | 4.26% | 4.24% | 4.22% |
| 175% AFR | 5.03% | 4.97% | 4.94% | 4.92% |
| Long-term | ||||
| AFR | 3.02% | 3.00% | 2.99% | 2.98% |
| 110% AFR | 3.33% | 3.30% | 3.29% | 3.28% |
| 120% AFR | 3.63% | 3.60% | 3.58% | 3.57% |
| 130% AFR | 3.94% | 3.90% | 3.88% | 3.87% |
| REV. RUL. 2018–23 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for September 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term adjusted AFR | 1.90% | 1.89% | 1.89% | 1.88% |
| Mid-term adjusted AFR | 2.17% | 2.16% | 2.15% | 2.15% |
| Mid-term adjusted AFR | 2.29% | 2.28% | 2.27% | 2.27% |
| REV. RUL. 2018–23 TABLE 3 | |
|---|---|
| Rates Under Section 382 for September 2018 | |
| Adjusted federal long-term rate for the current month | 2.29% |
| 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 | 2.32% |
| REV. RUL. 2018–23 TABLE 4 | | | --- | --- | --- | | Appropriate Percentages Under Section 42(b)(1) for September 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 | 7.68% | | Appropriate percentage for the 30% present value low-income housing credit | 3.29% |
| REV. RUL. 2018–21 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for September 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 | 3.4% |