Revenue Ruling 2009-12: Various Prescribed Rates For Federal Income Tax Purposes (May 2009)

Revenue Ruling 2009-12 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274.

Part I

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

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520,
7872.)



Rev. Rul. 2009-12

This revenue ruling provides various prescribed rates for federal income tax
purposes for May 2009 (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, and before December 31, 2013,
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. 2009-12 TABLE 1

Applicable Federal Rates (AFR) for May 2009

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR .76% .76% .76% .76%
110% AFR .84% .84% .84% .84%
120% AFR .91% .91% .91% .91%
130% AFR .99% .99% .99% .99%

Mid-term

AFR 2.05% 2.04% 2.03% 2.03%
110% AFR 2.25% 2.24% 2.23% 2.23%
120% AFR 2.47% 2.45% 2.44% 2.44%
130% AFR 2.67% 2.65% 2.64% 2.64%
150% AFR 3.08% 3.06% 3.05% 3.04%
175% AFR 3.60% 3.57% 3.55% 3.54%

Long-term

AFR 3.58% 3.55% 3.53% 3.52%
110% AFR 3.95% 3.91% 3.89% 3.88%
120% AFR 4.31% 4.26% 4.24% 4.22%
130% AFR 4.67% 4.62% 4.59% 4.58%


REV. RUL. 2009-12 TABLE 2

Adjusted AFR for May 2009

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR .80% .80% .80% .80%

Mid-term
adjusted AFR 2.39% 2.38% 2.37% 2.37%

Long-term
adjusted AFR 4.58% 4.53% 4.50% 4.49%

REV. RUL. 2009-12 TABLE 3

Rates Under Section 382 for May 2009
Adjusted federal long-term rate for the current month 4.58%

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.) 4.61%


REV. RUL. 2009-12 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for May 2009

Note: Under Section 42(b)(2), the applicable percentage for non-federally
subsidized new buildings placed in service after July 30, 2008, and before
December 31, 2013, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income
housing credit 7.65%

Appropriate percentage for the 30% present value low-income
housing credit 3.28%


REV. RUL. 2009-12 TABLE 5

Rate Under Section 7520 for May 2009

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 2.4%

For More Information Contact The Atlanta, Georgia Law Offices Of AttorneyBritt:

AttorneyBritt
Gary L. Britt, CPA, J.D.
1200 Abernathy Road, Suite 1700
Atlanta, Georgia 30328

404-567-6445

“Lawyer's That Mean Business”

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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