US · guidance

Rev. Rul. 2024-9, 2024-19 I.R.B. 964

Section 1274.—Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

activein force · 2024-05-06 – presentact-effective-date

This revenue ruling provides various prescribed rates for federal income tax purposes for May 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. 2024-09 TABLE 1 Applicable Federal Rates (AFR) for May 2024 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

4.97%

4.91%

4.88%

4.86%

110% AFR

5.47%

5.40%

5.36%

5.34%

120% AFR

5.98%

5.89%

5.85%

5.82%

130% AFR

6.48%

6.38%

6.33%

6.30%

Mid-term

AFR

4.42%

4.37%

4.35%

4.33%

110% AFR

4.87%

4.81%

4.78%

4.76%

120% AFR

5.31%

5.24%

5.21%

5.18%

130% AFR

5.76%

5.68%

5.64%

5.61%

150% AFR

6.67%

6.56%

6.51%

6.47%

175% AFR

7.80%

7.65%

7.58%

7.53%

Long-term

AFR

4.55%

4.50%

4.47%

4.46%

110% AFR

5.01%

4.95%

4.92%

4.90%

120% AFR

5.47%

5.40%

5.36%

5.34%

130% AFR

5.94%

5.85%

5.81%

5.78%

REV. RUL. 2024-09 TABLE 2 Adjusted AFR for May 2024 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.76%

3.73%

3.71%

3.70%

Mid-term adjusted AFR

3.35%

3.32%

3.31%

3.30%

Long-term adjusted AFR

3.45%

3.42%

3.41%

3.40%

REV. RUL. 2024-09 TABLE 3 Rates Under Section 382 for May 2024

Adjusted federal long-term rate for the current month

3.45%

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.)

3.45%

REV. RUL. 2024-09 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for May 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

8.04%

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

3.45%

REV. RUL. 2024-09 TABLE 5 Rate Under Section 7520 for May 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

5.40%

Section 42.—Low-Income Housing Credit