### Question
How is the "adjusted Federal long-term rate" defined?


### Answer
The term **adjusted Federal long-term rate** is defined in *26 U.S.C. § 382* as follows -

> the Federal long-term rate determined under section 1274(d), except that—


(A) paragraphs (2) and (3) thereof shall not apply, and


(B) such rate shall be properly adjusted for differences between rates on long-term taxable and tax-exempt obligations

#### Citation:
  - *26 U.S.C. § 382*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART V-CARRYOVERS**

