Rev. Rul. 2018-28 - Rev. Rul. 2018–28
Rev. Rul. 2018–28
This revenue ruling provides various prescribed rates for federal income tax purposes for November 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. 2018–28 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for November 2018 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | 2.70% | 2.68% | 2.67% | 2.67% |
| 110% AFR | 2.97% | 2.95% | 2.94% | 2.93% |
| 120% AFR | 3.25% | 3.22% | 3.21% | 3.20% |
| 130% AFR | 3.51% | 3.48% | 3.46% | 3.46% |
| Mid-term | ||||
| AFR | 3.04% | 3.02% | 3.01% | 3.00% |
| 110% AFR | 3.35% | 3.32% | 3.31% | 3.30% |
| 120% AFR | 3.65% | 3.62% | 3.60% | 3.59% |
| 130% AFR | 3.97% | 3.93% | 3.91% | 3.90% |
| 150% AFR | 4.58% | 4.53% | 4.50% | 4.49% |
| 175% AFR | 5.36% | 5.29% | 5.26% | 5.23% |
| Long-term | ||||
| AFR | 3.22% | 3.19% | 3.18% | 3.17% |
| 110% AFR | 3.54% | 3.51% | 3.49% | 3.48% |
| 120% AFR | 3.87% | 3.83% | 3.81% | 3.80% |
| 130% AFR | 4.19% | 4.15% | 4.13% | 4.11% |
| REV. RUL. 2018–28 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for November 2018 | ||||
| Period for Compounding | ||||
| Annualv | Semiannual | Quarterly | Monthly | |
| Short-term adjusted AFR | 2.04% | 2.03% | 2.02% | 2.02% |
| Mid-term adjusted AFR | 2.30% | 2.29% | 2.28% | 2.28% |
| Long-term adjusted AFR | 2.43% | 2.42% | 2.41% | 2.41% |
| REV. RUL. 2018–28 TABLE 3 | |
|---|---|
| Rates Under Section 382 for November 2018 | |
| Adjusted federal long-term rate for the current month | 2.43% |
| 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.) | 2.43% |
| REV. RUL. 2018–28 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for November 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 | 7.72% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.31% |
| REV. RUL. 2018–28 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for November 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 | 3.6% |