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Internal Revenue Bulletin:  2016-49 

December 5, 2016 

Rev. Rul. 2016–27


Table of Contents

This revenue ruling provides various prescribed rates for federal income tax purposes for December 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%. 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 2017 interest rate for purposes of sections 846 and 807.

REV. RUL. 2016–27 TABLE 1
Applicable Federal Rates (AFR) for December 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term
AFR .74% .74% .74% .74%
110% AFR .81% .81% .81% .81%
120% AFR .89% .89% .89% .89%
130% AFR .96% .96% .96% .96%
Mid-term
AFR 1.47% 1.46% 1.46% 1.46%
110% AFR 1.62% 1.61% 1.61% 1.60%
120% AFR 1.76% 1.75% 1.75% 1.74%
130% AFR 1.91% 1.90% 1.90% 1.89%
150% AFR 2.20% 2.19% 2.18% 2.18%
175% AFR 2.58% 2.56% 2.55% 2.55%
Long-term
AFR 2.26% 2.25% 2.24% 2.24%
110% AFR 2.50% 2.48% 2.47% 2.47%
120% AFR 2.72% 2.70% 2.69% 2.68%
130% AFR 2.95% 2.93% 2.92% 2.91%
REV. RUL. 2016–27 TABLE 2
Adjusted AFR for December 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term adjusted AFR .55% .55% .55% .55%
Mid-term adjusted AFR 1.09% 1.09% 1.09% 1.09%
Long-term adjusted AFR 1.68% 1.67% 1.67% 1.66%
REV. RUL. 2016–27 TABLE 3
Rates Under Section 382 for December 2016
Adjusted federal long-term rate for the current month 1.68%
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.) 1.68%
REV. RUL. 2016–27 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for December 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 7.43%
Appropriate percentage for the 30% present value low-income housing credit 3.18%
REV. RUL. 2016–27 TABLE 5
Rate Under Section 7520 for December 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%
REV. RUL. 2016–27 TABLE 6
Rates Under Sections 846 and 807
Applicable rate of interest for 2017 for purposes of sections 846 and 807 1.46%

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