IRS Revenue Ruling
1997-7

Code Secs. 1274, 42, 280G, 382, 412, 467 ....

<<FULL TEXT>>

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846,
1288, 7520, 7872.)

Federal rates; adjusted federal rates; adjusted federal long-term rate,
and the long-term exempt rate. For purposes of sections 1274, 1288, 382,
and other sections of the Code, tables set forth the rates for February
1997.


REV. RUL. 97-7

This revenue ruling provides various prescribed rates for federal
income tax purposes for February 1997 (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)(2)
for buildings placed in service during the current month. 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. 97-7 TABLE 1

Applicable Federal Rates (AFR) for February 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.81% 5.73% 5.69% 5.66%
110% AFR 6.40% 6.30% 6.25% 6.22%
120% AFR 7.00% 6.88% 6.82% 6.78%
130% AFR 7.59% 7.45% 7.38% 7.34%

Mid-Term
AFR 6.38% 6.28% 6.23% 6.20%
110% AFR 7.03% 6.91% 6.85% 6.81%
120% AFR 7.68% 7.54% 7.47% 7.42%
130% AFR 8.33% 8.16% 8.08% 8.02%
150% AFR 9.64% 9.42% 9.31% 9.24%
175% AFR 11.29% 10.99% 10.84% 10.75%

Long-Term
AFR 6.78% 6.67% 6.62% 6.58%
110% AFR 7.47% 7.34% 7.27% 7.23%
120% AFR 8.16% 8.00% 7.92% 7.87%
130% AFR 8.86% 8.67% 8.58% 8.52%


REV. RUL. 97-7 TABLE 2

Adjusted AFR for February 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.68% 3.65% 3.63% 3.62%
Mid-term
adjusted AFR 4.60% 4.55% 4.52% 4.51%
Long-term
adjusted AFR 5.47% 5.40% 5.36% 5.34%


REV. RUL. 97-7 TABLE 3

Rates Under Section 382 for February 1997

Adjusted federal long-term rate for the current month 5.47%

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.) 5.48%


REV. RUL. 97-7 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for February 1997

Appropriate percentage for the 70% present value
low-income housing credit 8.55%
Appropriate percentage for the 30% present value
low-income housing credit 3.66%


REV. RUL. 97-7 TABLE 5

Rate Under Section 7520 for February 1997

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 7.6%

<<END RULING>>
 

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