Applicable Federal Rates for September 2016 




Rev Rul 2016-20

The Applicable Federal Rates for September 2016 are reproduced below.

Table 1
Applicable Federal Rates (AFR) for September 2016
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-Term
AFR .61% .61% .61% .61%
110% AFR .67% .67% .67% .67%
120% AFR .73% .73% .73% .73%
130% AFR .79% .79% .79% .79%
Mid-Term
AFR 1.22% 1.22% 1.22% 1.22%
110% AFR 1.34% 1.34% 1.34% 1.34%
120% AFR 1.47% 1.46% 1.46% 1.46%
130% AFR 1.60% 1.59% 1.59% 1.58%
150% AFR 1.84% 1.83% 1.83% 1.82%
175% AFR 2.15% 2.14% 2.13% 2.13%
Long-Term
AFR 1.90% 1.89% 1.89% 1.88%
110% AFR 2.09% 2.08% 2.07% 2.07%
120% AFR 2.28% 2.27% 2.26% 2.26%
130% AFR 2.48% 2.46% 2.45% 2.45%
Table 2
Adjusted AFR for September 2016
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR .45% .45% .45% .45%
Mid-term
adjusted AFR .91% .91% .91% .91%
Long-term
adjusted AFR 1.41% 1.41% 1.41% 1.41%
Table 3
Rates Under Section 382 for September 2016
Adjusted federal long-term rate for the current month 1.41%
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) 2.08%
Table 4
Appropriate Percentages Under Section 42(b)(1)
for September 2016**
Appropriate percentage for the 70% present value low-income
housing credit 7.36%
Appropriate percentage for the 30% present value low-income
housing credit 3.15%
Table 5
Rate Under Section 7520 for September 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 1.4%

**Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after Sept. 30, 2008, will not be less than 9%.

see: http://www.TaxEsq.com
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