IRS Revenue Ruling
1997-36

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 section 1274, 1288, 382,
and other sections of the Code, tables set forth the rates for September
1997.


REV. RUL. 97-36

This revenue ruling provides various prescribed rates for federal
income tax purposes for September 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. 97-36 TABLE 1

Applicable Federal Rates (AFR) for September 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 6.23% 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%
150% AFR 9.42% 9.21% 9.11% 9.04%
175% AFR 11.04% 10.75% 10.61% 10.52%

Long-Term
AFR 6.55% 6.45% 6.40% 6.36%
110% AFR 7.23% 7.10% 7.04% 7.00%
120% AFR 7.89% 7.74% 7.67% 7.62%
130% AFR 8.57% 8.39% 8.30% 8.25%


REV. RUL. 97-36 TABLE 2

Adjusted AFR for September 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.94% 3.90% 3.88% 3.87%

Mid-term
adjusted AFR 4.28% 4.24% 4.22% 4.20%

Long-term
adjusted AFR 5.09% 5.03% 5.00% 4.98%


REV. RUL. 97-36 TABLE 3

Rates Under Section 382 for September 1997

Adjusted federal long-term rate for the current month 5.09%

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.) 5.45%


REV. RUL. 97-36 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.50%
Appropriate percentage for the 30% present value
low-income housing credit 3.64%


REV. RUL. 97-36 TABLE 5

Rate Under Section 7520 for September 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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