IRS Revenue Ruling 2010-15

IRS Revenue Ruling 2010-15 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274.

The rates are published monthly for purposes of sections 42, 382, 412, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

IRS Revenue Ruling 2010-15 will be in IRB 2010-23, dated June 7, 2010.


Part I

Section 1274.--Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.)

Rev. Rul. 2010-15

This revenue ruling provides various prescribed rates for federal income tax purposes for June 2010 (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, and before December 31, 2013, 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. 2010-15 TABLE 1

Applicable Federal Rates (AFR) for June 2010


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 2.72% 2.70% 2.69% 2.68%
110% AFR 2.99% 2.97% 2.96% 2.95%
120% AFR 3.27% 3.24% 3.23% 3.22%
130% AFR 3.54% 3.51% 3.49% 3.48%
150% AFR 4.09% 4.05% 4.03% 4.02%
175% AFR 4.79% 4.73% 4.70% 4.68%

Long-term

AFR 4.30% 4.25% 4.23% 4.21%
110% AFR 4.73% 4.68% 4.65% 4.64%
120% AFR 5.17% 5.10% 5.07% 5.05%
130% AFR 5.61% 5.53% 5.49% 5.47%



REV. RUL. 2010-15 TABLE 2

Adjusted AFR for June 2010

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

adjusted AFR .76% .76% .76% .76%

Mid-term

adjusted AFR 2.08% 2.07% 2.06% 2.06%

Long-term

adjusted AFR 4.01% 3.97% 3.95% 3.94%



REV. RUL. 2010-15 TABLE 3

Rates Under Section 382 for June 2010

Adjusted federal long-term rate for the current month 4.01%

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.) 4.01%



REV. RUL. 2010-15 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for June 2010

Note: Under Section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, and before December 31, 2013, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income housing credit 7.81%

Appropriate percentage for the 30% present value low-income housing credit 3.35%



REV. RUL. 2010-15 TABLE 5

Rate Under Section 7520 for June 2010

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 3.2%