Applicable Federal Rates for May 2017 Released (Rev. Rul. 2017-11)

CCH Tax Day Report

Various prescribed rates for federal income tax purposes for March 2017 have been provided by the IRS. The annual short-term, mid-term and long-term applicable federal interest rates (AFRs) are 1.15 percent, 2.04 percent and 2.75 percent, respectively. The semiannual short-term, mid-term and long-term AFRs are 1.15 percent, 2.03 percent and 2.73 percent, respectively. Quarterly short-term, mid-term and long-term AFRs are 1.15 percent, 2.02 percent and 2.72 percent, respectively. Finally, the monthly short-term, mid-term and long-term rates are 1.15 percent, 2.02 percent and 2.71 percent, respectively.

The short-term, mid-term and long-term adjusted applicable federal rates (adjusted AFR) for March 2017 for purposes of Code Sec. 1288(b) are 0.86 percent, 1.52 percent, and 2.04 percent, respectively, when annual compounding is used.

Additionally, the Code Sec. 382 adjusted federal long-term rate is 2.04 percent, and the long-term tax-exempt rate is 2.09 percent. The Code Sec. 42(b)(2) appropriate percentage for the 70-percent present-value, low-income housing credit is 7.55 percent, and the appropriate percentage for the 30-percent present-value, low-income housing credit is 3.24 percent. Finally, the Code Sec. 7520 AFR for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest is 2.40 percent.

Rev. Rul. 2017-11, 2017FED ¶46,270

Rev. Rul. 2017-11, FINH ¶30,853

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