Federal Income Tax Rates 2019 – 2020

Section 1274.–Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property https://www.irs.gov/pub/irs-drop/rr-1… http://accountinginstruction.info/ (Also Sections 42, 280G, 382, 467, 468, 482, 483, 1288, 7520, 7872.) Rev. Rul. 2019-20 This revenue ruling provides various prescribed rates for federal income tax purposes for September 2019 (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 longterm rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the lowincome 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. Applicable Federal Rates (AFR) for September 2019 Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 1.85% 1.84% 1.84% 1.83% 110% AFR 2.03% 2.02% 2.01% 2.01% 120% AFR 2.22% 2.21% 2.20% 2.20% 130% AFR 2.40% 2.39% 2.38% 2.38% Mid-term AFR 1.78% 1.77% 1.77% 1.76% 110% AFR 1.96% 1.95% 1.95% 1.94% 120% AFR 2.13% 2.12% 2.11% 2.11% 130% AFR 2.31% 2.30% 2.29% 2.29% 150% AFR 2.68% 2.66% 2.65% 2.65% 175% AFR 3.12% 3.10% 3.09% 3.08% Long-term AFR 2.21% 2.20% 2.19% 2.19% 110% AFR 2.43% 2.42% 2.41% 2.41% 120% AFR 2.66% 2.64% 2.63% 2.63% 130% AFR 2.88% 2.86% 2.85% 2.84% Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 1.40% 1.40% 1.40% 1.40% Mid-term adjusted AFR 1.34% 1.34% 1.34% 1.34% Long-term adjusted AFR 1.68% 1.67% 1.67% 1.66% REV. RUL. 2019-20 TABLE 3 Rates Under Section 382 for September 2019 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.) 1.89% REV. RUL. 2019-20 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for September 2019 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 7.46% Appropriate percentage for the 30% present value low-income housing credit 3.20%