Rev. Rul. 2023-18

This revenue ruling provides various prescribed rates for federal income tax

purposes for October 2023 (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 shortterm, 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.

REV. RUL. 2023-18 TABLE 1 Applicable Federal Rates (AFR) for October 2023

Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 5.22% 5.15% 5.12% 5.10% 110% AFR 5.75% 5.67% 5.63% 5.60% 120% AFR 6.28% 6.18% 6.13% 6.10% 130% AFR 6.81% 6.70% 6.64% 6.61% Mid-term AFR 4.43% 4.38% 4.36% 4.34% 110% AFR 4.88% 4.82% 4.79% 4.77% 120% AFR 5.33% 5.26% 5.23% 5.20% 130% AFR 5.77% 5.69% 5.65% 5.62% 150% AFR 6.68% 6.57% 6.52% 6.48% 175% AFR 7.82% 7.67% 7.60% 7.55% Long-term AFR 4.46% 4.41% 4.39% 4.37% 110% AFR 4.91% 4.85% 4.82% 4.80% 120% AFR 5.36% 5.29% 5.26% 5.23% 130% AFR 5.81% 5.73% 5.69% 5.66%

REV. RUL. 2023-18 TABLE 2 Adjusted AFR for October 2023

Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 3.95% 3.91% 3.89% 3.88% Mid-term adjusted AFR 3.36% 3.33% 3.32% 3.31% Long-term adjusted AFR 3.38% 3.35% 3.34% 3.33%

October 2, 2023 972 Bulletin No. 2023–40

REV. RUL. 2023-18 TABLE 3 Rates Under Section 382 for October 2023 Adjusted federal long-term rate for the current month 3.38% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal 3.38% long-term rates for the current month and the prior two months.)

REV. RUL. 2023-18 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for October 2023 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 8.03% Appropriate percentage for the 30% present value low-income housing credit 3.44%

REV. RUL. 2023-18 TABLE 5 Rate Under Section 7520 for October 2023 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

5.40%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of October 2023. See Rev. Rul. 2023-18, page 972.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of October 2023. See Rev. Rul. 2023-18, page 972.

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 October 2023. See Rev. Rul. 2023-18, page 972.

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 October 2023. See Rev. Rul. 2023-18, page 972.

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

The applicable federal short-term rates are set forth for the month of October 2023. See Rev. Rul. 2023-18, page 972.

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 October 2023. See Rev. Rul. 2023-18, page 972.

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 October 2023. See Rev. Rul. 2023-18, page 972.

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 October 2023. See Rev. Rul. 2023-18, page 972.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of October 2023. See Rev. Rul. 2023-18, page 972.

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 October 2023. See Rev. Rul. 2023-18, page 972.

Bulletin No. 2023–40 973 October 2, 2023