Rev. Rul. 2019-03 - Rev. Rul. 2019–03
Rev. Rul. 2019–03
This revenue ruling provides various prescribed rates for federal income tax purposes for January 2019 (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 2019 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. 2019–03 TABLE 1 | ||||
|---|---|---|---|---|
| Applicable Federal Rates (AFR) for January 2019 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term | ||||
| AFR | 2.72% | 2.70% | 2.69% | 2.68% |
| 110% AFR | 2.99% | 2.97% | 2.96% | 2.95% |
| 120% AFR | 3.27% | 3.24% | 3.23% | 3.22% |
| 130% AFR | 3.54% | 3.51% | 3.49% | 3.48% |
| Mid-term | ||||
| AFR | 2.89% | 2.87% | 2.86% | 2.85% |
| 110% AFR | 3.18% | 3.16% | 3.15% | 3.14% |
| 120% AFR | 3.47% | 3.44% | 3.43% | 3.42% |
| 130% AFR | 3.76% | 3.73% | 3.71% | 3.70% |
| 150% AFR | 4.36% | 4.31% | 4.29% | 4.27% |
| 175% AFR | 5.08% | 5.02% | 4.99% | 4.97% |
| Long-term | ||||
| AFR | 3.15% | 3.13% | 3.12% | 3.11% |
| 110% AFR | 3.47% | 3.44% | 3.43% | 3.42% |
| 120% AFR | 3.80% | 3.76% | 3.74% | 3.73% |
| 130% AFR | 4.11% | 4.07% | 4.05% | 4.04% |
| REV. RUL. 2019–03 TABLE 2 | ||||
|---|---|---|---|---|
| Adjusted AFR for January 2019 | ||||
| Period for Compounding | ||||
| Annual | Semiannual | Quarterly | Monthly | |
| Short-term adjusted AFR | 2.06% | 2.05% | 2.04% | 2.04% |
| Mid-term adjusted AFR | 2.19% | 2.18% | 2.17% | 2.17% |
| Long-term adjusted AFR | 2.39% | 2.38% | 2.37% | 2.37% |
| REV. RUL. 2019–03 TABLE 3 | |
|---|---|
| Rates Under Section 382 for January 2019 | |
| Adjusted federal long-term rate for the current month | 2.39% |
| 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.) | 2.51% |
| REV. RUL. 2019–03 TABLE 4 | |
|---|---|
| Appropriate Percentages Under Section 42(b)(1) for January 2019 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 | 7.70% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.30% |
| REV. RUL. 2019–03 TABLE 5 | |
|---|---|
| Rate Under Section 7520 for January 2019 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% |
| REV. RUL. 2019–03 TABLE 6 | |
|---|---|
| Deemed Rate for Transfers to New Pooled Income Funds During 2019 | |
| Deemed rate of return for transfers during 2019 to pooled income funds that have been in existence for less than 3 taxable years | 2.2% |