Rev. Rul. 2019-12

This revenue ruling provides various prescribed rates for federal income

tax purposes for May 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 long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the ap propriate 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.

Quarterly Monthly

Annual

Applicable Federal Rates (AFR) for May 2019

Period for Compounding

Semiannual

Short-term

AFR 2.39% 2.38% 2.37% 2.37% 110% AFR 2.64% 2.62% 2.61% 2.61% 120% AFR 2.88% 2.86% 2.85% 2.84% 130% AFR 3.11% 3.09% 3.08% 3.07% Mid-term AFR 2.37% 2.36% 2.35% 2.35% 110% AFR 2.62% 2.60% 2.59% 2.59% 120% AFR 2.85% 2.83% 2.82% 2.81% 130% AFR 3.09% 3.07% 3.06% 3.05% 150% AFR 3.57% 3.54% 3.52% 3.51%

175% AFR 4.17% 4.13% 4.11% 4.09%

Long-term AFR 2.74% 2.72% 2.71% 2.70%

110% AFR 3.01% 2.99% 2.98% 2.97% 120% AFR 3.29% 3.26% 3.25% 3.24% 130% AFR 3.57% 3.54% 3.52% 3.51%

REV. RUL. 2019-12 TABLE 2

Adjusted AFR for May 2019

Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 1.82% 1.81% 1.81% 1.80% Mid-term adjusted AFR 1.80% 1.79% 1.79% 1.78% Long-term adjusted AFR 2.08% 2.07% 2.06% 2.06%

Bulletin No. 2019–19 1081 May 6, 2019

REV. RUL. 2019-12 TABLE 3 Rates Under Section 382 for May 2019 Adjusted federal long-term rate for the current month 2.08% Long-term tax-exempt rate for ownership changes during the current month (the highest of 2.20% the adjusted federal long-term rates for the current month and the prior two months.)

REV. RUL. 2019-12 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for May 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 7.59% Appropriate percentage for the 30% present value low-income housing credit 3.25%

REV. RUL. 2019-12 TABLE 5 Rate Under Section 7520 for May 2019 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

2.8%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

The adjusted applicable federal long-term rate is set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 467.—Certain Payments for the Use of Property or Services

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 482.—Allocation of Income and Deductions Among Taxpayers

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 483.—Interest on Certain Deferred Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 7520.—Valuation Tables

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

Section 7872.—Treatment of Loans With Below- Market Interest Rates

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of May 2019. See Rev. Rul. 2019-12, page 1081.

May 6, 2019 1082 Bulletin No. 2019–19