Rev. Rul. 2025-1
Rev. Rul. 2025-1
This revenue ruling provides various prescribed rates for federal income tax purposes for January 2025 (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. Table 6 contains the deemed rate of return for transfers made during calendar year 2025 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. Finally, Table 7 contains the average of the applicable federal mid-term rates (based on annual compounding) for the 60-month period ending December 31, 2024, for purposes of section 7702(f)(11).
REV. RUL. 2025-1 TABLE 1 Applicable Federal Rates (AFR) for January 2025 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term | ||||
| AFR | 4.33% | 4.28% | 4.26% | 4.24% |
| 110% AFR | 4.77% | 4.71% | 4.68% | 4.66% |
| 120% AFR | 5.21% | 5.14% | 5.11% | 5.09% |
| 130% AFR | 5.64% | 5.56% | 5.52% | 5.50% |
| Mid-term | ||||
| AFR | 4.24% | 4.20% | 4.18% | 4.16% |
| 110% AFR | 4.67% | 4.62% | 4.59% | 4.58% |
| 120% AFR | 5.10% | 5.04% | 5.01% | 4.99% |
| 130% AFR | 5.53% | 5.46% | 5.42% | 5.40% |
| 150% AFR | 6.40% | 6.30% | 6.25% | 6.22% |
| 175% AFR | 7.49% | 7.35% | 7.28% | 7.24% |
| Long-term | ||||
| AFR | 4.53% | 4.48% | 4.46% | 4.44% |
| 110% AFR | 4.99% | 4.93% | 4.90% | 4.88% |
| 120% AFR | 5.45% | 5.38% | 5.34% | 5.32% |
| 130% AFR | 5.90% | 5.82% | 5.78% | 5.75% |
REV. RUL. 2025-1 TABLE 2 Adjusted AFR for January 2025 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term adjusted AFR | 3.28% | 3.25% | 3.24% | 3.23% |
| Mid-term adjusted AFR | 3.22% | 3.19% | 3.18% | 3.17% |
| Long-term adjusted AFR | 3.43% | 3.40% | 3.39% | 3.38% |
REV. RUL. 2025-1 TABLE 3 Rates Under Section 382 for January 2025
| Adjusted federal long-term rate for the current month | 3.43% |
|---|---|
| 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.) | 3.43% |
REV. RUL. 2025-1 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for January 2025
| 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 | 8.02% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.44% |
REV. RUL. 2025-1 TABLE 5 Rate Under Section 7520 for January 2025
| 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 | 5.2% |
|---|
REV. RUL. 2025-1 TABLE 6 Deemed Rate for Transfers to New Pooled Income Funds During 2025
| Deemed rate of return for transfers during 2025 to pooled income funds that have been in existence for less than 3 taxable years | 4.0% |
|---|
REV. RUL. 2025-1 TABLE 7 Average of the Applicable Federal Mid-Term Rates for 2024
| For purposes of section 7702(f)(11), the average of the applicable federal mid-term rates (based on annual compounding) for the 60-month period ending December 31, 2024, is 2.53% rounded to 3%. |
|---|
Section 42.—Low-Income Housing Credit
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 2025. See Rev. Rul. 2025-1, page 307.
Section 280G.—Golden Parachute Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 2025. See Rev. Rul. 2025-1, page 307.
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 January 2025. See Rev. Rul. 2025-1, page 307.
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 January 2025. See Rev. Rul. 2025-1, page 307.
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 January 2025. See Rev. Rul. 2025-1, page 307.
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 January 2025. See Rev. Rul. 2025-1, page 307.
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 January 2025. See Rev. Rul. 2025-1, page 307.
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 January 2025. See Rev. Rul. 2025-1, page 307.
Section 7520.—Valuation Tables
The applicable federal mid-term rates are set forth for the month of January 2025. See Rev. Rul. 2025-1, page 307.
Section 7702.—Life Insurance Contract Defined
The average of the applicable federal mid-term rates for the 60-month period ending December 31, 2024, for purposes of section 7702(f)(11). See Rev. Rul. 2025-1, page 307.
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 January 2025. See Rev. Rul. 2025-1, page 307.