IRS Revenue Ruling
1997-19

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 May 1997.


REV. RUL. 97-19

This revenue ruling provides various prescribed rates for federal
income tax purposes for May 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. 97-19 TABLE 1

Applicable Federal Rates (AFR) for May 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 6.23% 6.14% 6.09% 6.06%
110% AFR 6.86% 6.75% 6.69% 6.66%
120% AFR 7.51% 7.37% 7.30% 7.26%
130% AFR 8.14% 7.98% 7.90% 7.85%

Mid-Term
AFR 6.85% 6.74% 6.68% 6.65%
110% AFR 7.55% 7.41% 7.34% 7.30%
120% AFR 8.25% 8.09% 8.01% 7.96%
130% AFR 8.95% 8.76% 8.67% 8.60%
150% AFR 10.37% 10.11% 9.99% 9.90%
175% AFR 12.15% 11.80% 11.63% 11.52%

Long-Term
AFR 7.18% 7.06% 7.00% 6.96%
110% AFR 7.92% 7.77% 7.70% 7.65%
120% AFR 8.65% 8.47% 8.38% 8.32%
130% AFR 9.39% 9.18% 9.08% 9.01%


REV. RUL. 97-19 TABLE 2

Adjusted AFR for May 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.97% 3.93% 3.91% 3.90%
Mid-term
adjusted AFR 4.84% 4.78% 4.75% 4.73%
Long-term
adjusted AFR 5.64% 5.56% 5.52% 5.50%


REV. RUL. 97-19 TABLE 3

Rates Under Section 382 for May 1997

Adjusted federal long-term rate for the current month 5.64%

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.) 5.64%


REV. RUL. 97-19 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.65%

Appropriate percentage for the 30% present value
low-income housing credit 3.71%


REV. RUL. 97-19 TABLE 5

Rate Under Section 7520 for May 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 8.2%

<<END RULING>>
 

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