Applicable Federal Rates for October 2017 Released (Rev. Rul. 2017-20)

Various prescribed rates for federal income tax purposes for October 2017 have been provided by the IRS. The September 2017 rates can be found here

October Interest Rates

  1. The annual short-term, mid-term and long-term applicable federal interest rates (AFRs) are 1.27 percent, 1.85 percent and 2.50 percent, respectively.
  2. The semiannual short-term, mid-term and long-term AFRs are 1.27 percent, 1.84 percent and 2.48 percent, respectively.
  3. The quarterly short-term, mid-term and long-term AFRs are 1.27 percent, 1.84 percent and 2.47 percent, respectively.
  4. Finally, the monthly short-term, midterm and long-term rates are 1.27 percent, 1.83 percent and 2.47 percent, respectively.

Code Sec. 1288(b) Rates

The short-term, mid-term and long-term adjusted applicable federal rates (adjusted AFR) for October 2017 for purposes of Code Sec. 1288(b) are 0.94 percent, 1.37 percent, and 1.85 percent, respectively, when annual compounding is used.

Long-Term Rates

Additionally, the Code Sec. 382 adjusted federal long-term rate is 1.85 percent, and the long-term tax-exempt rate is 1.93 percent.

Low-Income Housing

The Code Sec. 42(b)(2) appropriate percentage for the 70-percent present-value, low-income housing credit is 7.50 percent, and the appropriate percentage for the 30-percent present-value, low-income housing credit is 3.21 percent.

Annuity Rates

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 2.2 percent.

Rev. Rul. 2017-20

 

 

 

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