Issued for Property (Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 1288, 7520, 7872.)

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, 1288, 7520, 7872.)

Rev. Rul. 2017-4

This revenue ruling provides various prescribed rates for federal

income tax purposes for February 2017 (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, 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.

2

REV. RUL

ble 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.

2

REV. RUL. 2017-4 TABLE 1

Applicable Federal Rates (AFR) for February 2017

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

1.04%

1.04%

1.04%

1.04%

110% AFR

1.14%

1.14%

1.14% 1.14%

120% AFR

1.25% 1.25%

1.25% 1.25%

130% AFR

1.35%

1.35% 1.35% 1.35%

Mid-term

AFR

2.10%

2.09% 2.08% 2.08%

110% AFR

2.31% 2.30% 2.29% 2.29%

120% AFR

2.53%

2.51%

2.50%

2.50%

130% AFR

2.74%

2.72%

2.71%

2.70%

150% AFR

3.16%

3.14%

3.13%

3.12%

175% AFR

3.69%

3.66%

3.64%

3.63%

Long-term

AFR

2.81%

2.79%

2.78%

2.77%

110% AFR

3.09%

3.07%

3.06% 3.05%

120% AFR

3.38%

3.35%

3.34%

3.33%

130% AFR

3.66%

3.63%

3.61%

3.60%

3

REV. RUL

Long-term

AFR

2.81%

2.79%

2.78%

2.77%

110% AFR

3.09%

3.07%

3.06% 3.05%

120% AFR

3.38%

3.35%

3.34%

3.33%

130% AFR

3.66%

3.63%

3.61%

3.60%

3

REV. RUL. 2017-4 TABLE 2

Adjusted AFR for February 2017

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

adjusted AFR

.77%

.77%

.77%

.77%

Mid-term

adjusted AFR 1.56%

1.55% 1.55% 1.55%

Long-term

adjusted AFR

2.09%

2.08%

2.07%

2.07%

REV. RUL. 2017-4 TABLE 3

Rates Under Section 382 for February 2017

Adjusted federal long-term rate for the current month

2.09%

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.)

2.09%

4

REV. RUL. 2017-4 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for February 2017

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

7.56%

Appropriate percentage for the 30% present value low-income

housing credit

3.24%

REV. RUL. 2017-4 TABLE 5

Rate Under Section 7520 for February 2017

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

2.6%