Rev. Rul. 2020-9
Rev. Rul. 2020-9
This revenue ruling provides various prescribed rates for federal income tax purposes for April 2020 (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. 2020-9 TABLE 1 Applicable Federal Rates (AFR) for April 2020 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term | ||||
| AFR | 0.91% | 0.91% | 0.91% | 0.91% |
| 110% AFR | 1.00% | 1.00% | 1.00% | 1.00% |
| 120% AFR | 1.09% | 1.09% | 1.09% | 1.09% |
| 130% AFR | 1.18% | 1.18% | 1.18% | 1.18% |
| Mid-term | ||||
| AFR | 0.99% | 0.99% | 0.99% | 0.99% |
| 110% AFR | 1.09% | 1.09% | 1.09% | 1.09% |
| 120% AFR | 1.19% | 1.19% | 1.19% | 1.19% |
| 130% AFR | 1.29% | 1.29% | 1.29% | 1.29% |
| 150% AFR | 1.50% | 1.49% | 1.49% | 1.49% |
| 175% AFR | 1.74% | 1.73% | 1.73% | 1.72% |
| Long-term | ||||
| AFR | 1.44% | 1.43% | 1.43% | 1.43% |
| 110% AFR | 1.58% | 1.57% | 1.57% | 1.56% |
| 120% AFR | 1.73% | 1.72% | 1.72% | 1.71% |
| 130% AFR | 1.87% | 1.86% | 1.86% | 1.85% |
REV. RUL. 2020-9 TABLE 2 Adjusted AFR for April 2020 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term adjusted AFR | 0.69% | 0.69% | 0.69% | 0.69% |
| Mid-term adjusted AFR | 0.75% | 0.75% | 0.75% | 0.75% |
| Long-term adjusted AFR | 1.09% | 1.09% | 1.09% | 1.09% |
REV. RUL. 2020-9 TABLE 3 Rates Under Section 382 for April 2020
| Adjusted federal long-term rate for the current month | 1.09% |
|---|---|
| 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.) | 1.63% |
REV. RUL. 2020-9 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for April 2020
| 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 | 7.28% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.12% |
REV. RUL. 2020-9 TABLE 5 Rate Under Section 7520 for April 2020
| 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 | 1.2% |
|---|
Section 42.—Low-Income Housing Credit
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 280G.—Golden Parachute Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change
The adjusted applicable federal long-term rate is set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 467.—Certain Payments for the Use of Property or Services
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs
The applicable federal short-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 482.—Allocation of Income and Deductions Among Taxpayers
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 483.—Interest on Certain Deferred Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 7520.—Valuation Tables
The applicable federal mid-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.
Section 7872.—Treatment of Loans With Below-Market Interest Rates
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 2020. See Rev. Rul. 2020-9, page 563.