IRS Revenue Ruling
1997-27

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.)


REV. RUL. 97-27

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 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. 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. Finally, Table 6 contains the blended annual rate for
purposes of section 7872.


REV. RUL. 97-27 TABLE 1

Applicable Federal Rates (AFR) for July 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 6.07% 5.98% 5.94% 5.91%
110% AFR 6.69% 6.58% 6.53% 6.49%
120% AFR 7.31% 7.18% 7.12% 7.07%
130% AFR 7.92% 7.77% 7.70% 7.65%

Mid-Term
AFR 6.65% 6.54% 6.49% 6.45%
110% AFR 7.32% 7.19% 7.13% 7.08%
120% AFR 8.00% 7.85% 7.77% 7.72%
130% AFR 8.68% 8.50% 8.41% 8.35%
150% AFR 10.05% 9.81% 9.69% 9.62%
175% AFR 11.78% 11.45% 11.29% 11.19%

Long-Term
AFR 6.99% 6.87% 6.81% 6.77%
110% AFR 7.70% 7.56% 7.49% 7.44%
120% AFR 8.41% 8.24% 8.16% 8.10%
130% AFR 9.13% 8.93% 8.83% 8.77%


REV. RUL. 97-27 TABLE 2

Adjusted AFR for July 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.99% 3.95% 3.93% 3.92%
Mid-term
adjusted AFR 4.71% 4.66% 4.63% 4.62%
Long-term
adjusted AFR 5.45% 5.38% 5.34% 5.32%


REV. RUL. 97-27 TABLE 3

Rates Under Section 382 for July 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.) 5.64%


REV. RUL. 97-27 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.60%
Appropriate percentage for the 30% present value
low-income housing credit 3.69%


REV. RUL. 97-27 TABLE 5

Rate Under Section 7520 for July 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 8.0%


REV. RUL. 97-27 TABLE 6

Blended Annual Rate for 1997

Section 7872(e)(2) blended annual rate for 1997 5.85%

<<END RULING>>
 

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