IRS Revenue Ruling
1997-10

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

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(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 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 March 1997.


REV. RUL. 97-10

This revenue ruling provides various prescribed rates for federal
income tax purposes for March 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. 97-10 TABLE 1

Applicable Federal Rates (AFR) for March 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.83% 5.75% 5.71% 5.68%
110% AFR 6.43% 6.33% 6.28% 6.25%
120% AFR 7.02% 6.90% 6.84% 6.80%
130% AFR 7.62% 7.48% 7.41% 7.37%

Mid-Term
AFR 6.42% 6.32% 6.27% 6.24%
110% AFR 7.07% 6.95% 6.89% 6.85%
120% AFR 7.72% 7.58% 7.51% 7.46%
130% AFR 8.39% 8.22% 8.14% 8.08%
150% AFR 9.70% 9.48% 9.37% 9.30%
175% AFR 11.37% 11.06% 10.91% 10.81%

Long-Term
AFR 6.86% 6.75% 6.69% 6.66%
110% AFR 7.57% 7.43% 7.36% 7.32%
120% AFR 8.26% 8.10% 8.02% 7.97%
130% AFR 8.97% 8.78% 8.69% 8.62%


REV. RUL. 97-10 TABLE 2

Adjusted AFR for March 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.77% 3.74% 3.72% 3.71%

Mid-term
adjusted AFR 4.62% 4.57% 4.54% 4.53%

Long-term
adjusted AFR 5.50% 5.43% 5.39% 5.37%


REV. RUL. 97-10 TABLE 3

Rates Under Section 382 for March 1997

Adjusted federal long-term rate for the current month 5.50%

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.) 5.50%


REV. RUL. 97-10 TABLE 4

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

Appropriate percentage for the 70% present value low-income
housing credit 8.56%

Appropriate percentage for the 30% present value low-income
housing credit 3.67%


REV. RUL. 97-10 TABLE 5

Rate Under Section 7520 for March 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 7.8%

<<END RULING>>
 

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