IRS Revenue Ruling
1997-43

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 rates for September
1998.


REV. RUL. 98-43

This revenue ruling provides various prescribed rates for federal
income tax purposes for September 1998 (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. 98-43 TABLE 1

Applicable Federal Rates (AFR) for September 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.42% 5.35% 5.31% 5.29%
110% AFR 5.98% 5.89% 5.85% 5.82%
120% AFR 6.52% 6.42% 6.37% 6.34%
130% AFR 7.08% 6.96% 6.90% 6.86%

Mid-Term
AFR 5.54% 5.47% 5.43% 5.41%
110% AFR 6.11% 6.02% 5.98% 5.95%
120% AFR 6.67% 6.56% 6.51% 6.47%
130% AFR 7.24% 7.11% 7.05% 7.01%
150% AFR 8.38% 8.21% 8.13% 8.07%
175% AFR 9.80% 9.57% 9.46% 9.38%

Long-Term
AFR 5.74% 5.66% 5.62% 5.59%
110% AFR 6.33% 6.23% 6.18% 6.15%
120% AFR 6.91% 6.79% 6.73% 6.70%
130% AFR 7.50% 7.36% 7.29% 7.25%


REV. RUL. 98-43 TABLE 2

Adjusted AFR for September 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------

Short-term
adjusted AFR 3.66% 3.63% 3.61% 3.60%

Mid-term
adjusted AFR 4.24% 4.20% 4.18% 4.16%

Long-term
adjusted AFR 5.02% 4.96% 4.93% 4.91%


REV. RUL. 98-43 TABLE 3

Rates Under Section 382 for September 1998

Adjusted federal long-term rate for the current month 5.02%

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.) 5.02%


REV. RUL. 98-43 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for September 1998

Appropriate percentage for the 70% present value
low-income housing credit 8.32%
Appropriate percentage for the 30% present value
low-income housing credit 3.57%


REV. RUL. 98-43 TABLE 5

Rate Under Section 7520 for September 1998

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 6.6%

<<END RULING>>
 

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