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Internal Revenue Bulletin:  2016-19 

May 9, 2016 

Rev. Rul. 2016–11


Table of Contents

This revenue ruling provides various prescribed rates for federal income tax purposes for May 2016 (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. 2016–11 TABLE 1
Applicable Federal Rates (AFR) for May 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term
AFR .67% .67% .67% .67%
110% AFR .74% .74% .74% .74%
120% AFR .80% .80% .80% .80%
130% AFR .87% .87% .87% .87%
Mid-term
AFR 1.43% 1.42% 1.42% 1.42%
110% AFR 1.57% 1.56% 1.56% 1.55%
120% AFR 1.71% 1.70% 1.70% 1.69%
130% AFR 1.86% 1.85% 1.85% 1.84%
150% AFR 2.14% 2.13% 2.12% 2.12%
175% AFR 2.51% 2.49% 2.48% 2.48%
Long-term
AFR 2.24% 2.23% 2.22% 2.22%
110% AFR 2.47% 2.45% 2.44% 2.44%
120% AFR 2.70% 2.68% 2.67% 2.67%
130% AFR 2.92% 2.90% 2.89% 2.88%
REV. RUL. 2016–11 TABLE 2
Adjusted AFR for May 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term adjusted AFR .63% .63% .63% .63%
Mid-term adjusted AFR 1.26% 1.26% 1.26% 1.26%
Long-term adjusted AFR 2.24% 2.23% 2.22% 2.22%
REV. RUL. 2016–11 TABLE 3
Rates Under Section 382 for May 2016
Adjusted federal long-term rate for the current month 2.24%
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.) 2.27%
REV. RUL. 2016–11 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for May 2016
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 7.42%
Appropriate percentage for the 30% present value low-income housing credit 3.18%
REV. RUL. 2016–11 TABLE 5
Rate Under Section 7520 for May 2016
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 1.8%

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