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Rev. Rul. 2018-11: Inflation adjustment for certain debt instruments

U.S. inflation adjustment for certain debt instruments

Rev. Rul. 2018-11—appearing in the Internal Revenue Bulletin (IRB 2018-18) dated Monday, April 30, 2018—provides the dollar amounts, increased by the 2018 inflation adjustments, for purposes of determining whether a debt instrument is a qualified debt instrument or a cash method debt instrument under section 1274A.


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Read text of Rev. Rul. 2018-11 in IRB 2018-18 [PDF 3.17 MB]

Section 1274A concerns certain debt instruments given in consideration of nonpublicly traded property when the stated principal amount does not exceed $2.8 million (as adjusted for inflation). The new tax law (Pub. L. No. 115-97, enacted December 22, 2017) revised the rules for determining the inflation adjustment for the dollar amounts stated in section 1274A. 

Rev. Rul. 2018-11 sets out, in table format, the inflation adjusted amounts under section 1274A for debt instruments arising out of sales or exchanges. 

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