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Internal Revenue Bulletin:  2016-41 

October 11, 2016 

Rev. Rul. 2016–25


Table of Contents

This revenue ruling provides various prescribed rates for federal income tax purposes for October 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). The rates in Table 2 have been determined in accordance with §1.1288–1. See T.D. 9763, 81 FR 24482 (April 26, 2016). 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. 2016–25 TABLE 1
Applicable Federal Rates (AFR) for October 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term
AFR .66% .66% .66% .66%
110% AFR .73% .73% .73% .73%
120% AFR .79% .79% .79% .79%
130% AFR .86% .86% .86% .86%
Mid-term
AFR 1.29% 1.29% 1.29% 1.29%
110% AFR 1.43% 1.42% 1.42% 1.42%
120% AFR 1.56% 1.55% 1.55% 1.55%
130% AFR 1.69% 1.68% 1.68% 1.67%
150% AFR 1.95% 1.94% 1.94% 1.93%
175% AFR 2.27% 2.26% 2.25% 2.25%
Long-term
AFR 1.95% 1.94% 1.94% 1.93%
110% AFR 2.14% 2.13% 2.12% 2.12%
120% AFR 2.34% 2.33% 2.32% 2.32%
130% AFR 2.54% 2.52% 2.51% 2.51%
REV. RUL. 2016–25 TABLE 2
Adjusted AFR for October 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term adjusted AFR .49% .49% .49% .49%
Mid-term adjusted AFR .96% .96% .96% .96%
Long-term adjusted AFR 1.45% 1.44% 1.44% 1.44%
REV. RUL. 2016–25 TABLE 3
Rates Under Section 382 for October 2016
Adjusted federal long-term rate for the current month 1.45%
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.) 1.82%
REV. RUL. 2016–25 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for October 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 7.37%
Appropriate percentage for the 30% present value low-income housing credit 3.16%
REV. RUL. 2016–25 TABLE 5
Rate Under Section 7520 for October 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 1.6%

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