IRS Revenue Ruling
1997-41

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 October
1997.


REV. RUL. 97-41

This revenue ruling provides various prescribed rates for federal
income tax purposes for October 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. 97-41 TABLE 1

Applicable Federal Rates (AFR) for October 1997

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.84% 5.76% 5.72% 5.69%
110% AFR 6.44% 6.34% 6.29% 6.26%
120% AFR 7.03% 6.91% 6.85% 6.81%
130% AFR 7.63% 7.49% 7.42% 7.38%

Mid-Term
AFR 6.34% 6.24% 6.19% 6.16%
110% AFR 6.98% 6.86% 6.80% 6.76%
120% AFR 7.63% 7.49% 7.42% 7.38%
130% AFR 8.27% 8.11% 8.03% 7.98%
150% AFR 9.58% 9.36% 9.25% 9.18%
175% AFR 11.22% 10.92% 10.77% 10.68%

Long-Term
AFR 6.68% 6.57% 6.52% 6.48%
110% AFR 7.36% 7.23% 7.17% 7.12%
120% AFR 8.04% 7.88% 7.80% 7.75%
130% AFR 8.72% 8.54% 8.45% 8.39%


REV. RUL. 97-41 TABLE 2

Adjusted AFR for October 1997

Period for Compounding
-----------------------------------------
Annual Semiannual Quarterly Month
------ ---------- --------- -----
Short-term
adjusted AFR 3.98% 3.94% 3.92% 3.91%

Mid-term
adjusted AFR 4.46% 4.41% 4.39% 4.37%

Long-term
adjusted AFR 5.27% 5.20% 5.17% 5.14%


REV. RUL. 97-41 TABLE 3

Rates Under Section 382 for October 1997

Adjusted federal long-term rate for the current month 5.27%

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.) 5.33%


REV. RUL. 97-41 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.53%
Appropriate percentage for the 30% present value
low-income housing credit 3.66%


REV. RUL. 97-41 TABLE 5

Rate Under Section 7520 for October 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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