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Internal Revenue Bulletin:  2016-27 

July 5, 2016 

Rev. Rul. 2016–17


This revenue ruling provides various prescribed rates for federal income tax purposes for July 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%. 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. Finally, Table 6 contains the blended annual rate for 2016 for purposes of section 7872.

REV. RUL. 2016–17 TABLE 1
Applicable Federal Rates (AFR) for July 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
  Short-term
AFR .71% .71% .71% .71%
110% AFR .78% .78% .78% .78%
120% AFR .85% .85% .85% .85%
130% AFR .92% .92% .92% .92%
  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 2.18% 2.17% 2.16% 2.16%
110% AFR 2.40% 2.39% 2.38% 2.38%
120% AFR 2.62% 2.60% 2.59% 2.59%
130% AFR 2.84% 2.82% 2.81% 2.80%
REV. RUL. 2016–17 TABLE 2
Adjusted AFR for July 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term adjusted AFR .65% .65% .65% .65%
Mid-term adjusted AFR 1.16% 1.16% 1.16% 1.16%
Long-term adjusted AFR 2.08% 2.07% 2.06% 2.06%
REV. RUL. 2016–17 TABLE 3
Rates Under Section 382 for July 2016
Adjusted federal long-term rate for the current month 2.08%
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.) 2.24%
REV. RUL. 2016–17 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for July 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 7.41%
Appropriate percentage for the 30% present value low-income housing credit 3.18%
    REV. RUL. 2016–17 TABLE 5
    Rate Under Section 7520 for July 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 mreversionary interest 1.8%
REV. RUL. 2016–17 TABLE 6
Blended Annual Rate for 2016
Section 7872(e)(2) blended annual rate for 2016 .73%

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