Rev. Rul. 2024-3, 2024-06 I.R.B. 646

This revenue ruling provides various prescribed rates for federal income tax purposes for February 2024 (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. 2024-03 TABLE 1 Applicable Federal Rates (AFR) for February 2024 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

4.68%

4.63%

4.60%

4.59%

110% AFR

5.15%

5.09%

5.06%

5.04%

120% AFR

5.64%

5.56%

5.52%

5.50%

130% AFR

6.11%

6.02%

5.98%

5.95%

Mid-term

AFR

3.98%

3.94%

3.92%

3.91%

110% AFR

4.38%

4.33%

4.31%

4.29%

120% AFR

4.79%

4.73%

4.70%

4.68%

130% AFR

5.19%

5.12%

5.09%

5.07%

150% AFR

6.00%

5.91%

5.87%

5.84%

175% AFR

7.02%

6.90%

6.84%

6.80%

Long-term

AFR

4.18%

4.14%

4.12%

4.10%

110% AFR

4.60%

4.55%

4.52%

4.51%

120% AFR

5.03%

4.97%

4.94%

4.92%

130% AFR

5.45%

5.38%

5.34%

5.32%

REV. RUL. 2024-03 TABLE 2 Adjusted AFR for February 2024 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.55%

3.52%

3.50%

3.49%

Mid-term adjusted AFR

3.01%

2.99%

2.98%

2.97%

Long-term adjusted AFR

3.16%

3.14%

3.13%

3.12%

REV. RUL. 2024-03 TABLE 3

Rates Under Section 382 for February 2024

Adjusted federal long-term rate for the current month

3.16%

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.)

3.81%

REV. RUL. 2024-03 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for February 2024

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

7.95%

Appropriate percentage for the 30% present value low-income housing credit

3.41%

REV. RUL. 2024-03 TABLE 5

Rate Under Section 7520 for February 2024

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

4.80%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2024. See Rev. Rul. 2024-03, page 646.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2024. See Rev. Rul. 2024-03, page 646.

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 February 2024. See Rev. Rul. 2024-03, page 646.

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 February 2024. See Rev. Rul. 2024-03, page 646.

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 February 2024. See Rev. Rul. 2024-03, page 646.

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 February 2024. See Rev. Rul. 2024-03, page 646.

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 February 2024. See Rev. Rul. 2024-03, page 646.

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 February 2024. See Rev. Rul. 2024-03, page 646.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of February 2024. See Rev. Rul. 2024-03, page 646.

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 February 2024. See Rev. Rul. 2024-03, page 646.