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Internal Revenue Bulletin:  2016-45 

November 7, 2016 

Rev. Rul. 2016–26


Table of Contents

This revenue ruling provides various prescribed rates for federal income tax purposes for November 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. 2016–26 TABLE 1
Applicable Federal Rates (AFR) for November 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term
AFR .68% .68% .68% .68%
110% AFR .75% .75% .75% .75%
120% AFR .82% .82% .82% .82%
130% AFR .88% .88% .88% .88%
Mid-term
AFR 1.33% 1.33% 1.33% 1.33%
110% AFR 1.47% 1.46% 1.46% 1.46%
120% AFR 1.61% 1.60% 1.60% 1.59%
130% AFR 1.74% 1.73% 1.73% 1.72%
150% AFR 2.01% 2.00% 2.00% 1.99%
175% AFR 2.34% 2.33% 2.32% 2.32%
Long-term
AFR 2.07% 2.06% 2.05% 2.05%
110% AFR 2.28% 2.27% 2.26% 2.26%
120% AFR 2.49% 2.47% 2.46% 2.46%
130% AFR 2.70% 2.68% 2.67% 2.67%
REV. RUL. 2016–26 TABLE 2
Adjusted AFR for November 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term adjusted AFR .51% .51% .51% .51%
Mid-term adjusted AFR .99% .99% .99% .99%
Long-term adjusted AFR 1.54% 1.53% 1.53% 1.53%
REV. RUL. 2016–26 TABLE 3
Rates Under Section 382 for November 2016
Adjusted federal long-term rate for the current month 1.54%
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.) 1.54%
REV. RUL. 2016–26 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for November 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 7.39%
Appropriate percentage for the 30% present value low-income housing credit 3.17%
REV. RUL. 2016–26 TABLE 5
Rate Under Section 7520 for November 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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