IRS Revenue Ruling
1997-17

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

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(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 rate for April, 1997.


REV. RUL. 97-17

This revenue ruling provides various prescribed rates for federal
income tax purposes for April 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. 97-17 TABLE 1

Applicable Federal Rates (AFR) for April 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.91% 5.83% 5.79% 5.76%
110% AFR 6.51% 6.41% 6.36% 6.33%
120% AFR 7.12% 7.00% 6.94% 6.90%
130% AFR 7.72% 7.58% 7.51% 7.46%

Mid-Term
AFR 6.49% 6.39% 6.34% 6.31%
110% AFR 7.15% 7.03% 6.97% 6.93%
120% AFR 7.82% 7.67% 7.60% 7.55%
130% AFR 8.48% 8.31% 8.23% 8.17%
150% AFR 9.82% 9.59% 9.48% 9.40%
175% AFR 11.49% 11.18% 11.03% 10.93%

Long-Term
AFR 6.88% 6.77% 6.71% 6.68%
110% AFR 7.59% 7.45% 7.38% 7.34%
120% AFR 8.28% 8.12% 8.04% 7.99%
130% AFR 8.99% 8.80% 8.71% 8.64%


REV. RUL. 97-17 TABLE 2

Adjusted AFR for April 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.75% 3.72% 3.70% 3.69%

Mid-term
adjusted AFR 4.55% 4.50% 4.47% 4.46%

Long-term
adjusted AFR 5.45% 5.38% 5.34% 5.32%


REV. RUL. 97-17 TABLE 3

Rates Under Section 382 for April 1997

Adjusted federal long-term rate for the current month 5.45%

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. 97-17 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.57%

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


REV. RUL. 97-17 TABLE 5

Rate Under Section 7520 for April 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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