IRS Revenue Ruling
1998-3

Code Sec. 42

<<FULL TEXT>>

LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR
THE PERIOD OCTOBER THROUGH DECEMBER 1997. This ruling announces the
monthly bond factor amounts to be used by taxpayers who dispose of
qualified low-income buildings or interests therein during the period
October through December 1997. The ruling also corrects errors in the bond
factor amounts for properties placed in service in 1987 and disposed of
between January through September 1997.


REV. RUL. 98-3

In Rev. Rul. 90-60, 1990-2 C.B. 3, the Internal Revenue Service
provided guidance to taxpayers concerning the general methodology used by
the Treasury Department in computing the bond factor amounts used in
calculating the amount of bond considered satisfactory by the Secretary
under section 42(j)(6) of the Internal Revenue Code. It further announced
that the Secretary would publish in the Internal Revenue Bulletin a table
of "bond factor" amounts for dispositions occurring during each calendar
month.

This revenue ruling provides in Table 1 the bond factor amounts for
calculating the amount of bond considered satisfactory under section
42(j)(6) for dispositions of qualified low-income buildings or interests
therein during the period October through December 1997. Table 2 provides
a summary of the bond factor amounts for dispositions occurring during the
period January through September 1997. Table 3 provides a summary of bond
factor amounts for dispositions occurring during the period January
through December 1996.

TABLE 1 REV. RUL. 98-3

Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage
of Total Credits

Calendar Year Building Placed in Service
or, if Section 42(f)(1) Election Was Made,
the Succeeding Calendar Year
--------------------------------------------------------
Month of
Disposition 1987 1988 1989 1990 1991 1992
----------- ---- ---- ---- ---- ---- ----
Oct '97 79.95 79.99 82.52 85.46 88.88 92.76
Nov '97 79.95 79.78 82.30 85.23 88.65 92.52
Dec '97 79.95 79.57 82.09 85.01 88.42 92.28

1993 1994 1995 1996 1997
---- ---- ---- ---- ----
Oct '97 96.76 100.63 104.47 108.59 112.52
Nov '97 96.51 100.38 104.22 108.38 112.52
Dec '97 96.26 100.13 103.99 108.20 112.52


TABLE 2 REV. RUL. 98-3

Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage
of Total Credits

Calendar Year Building Placed in Service
or, if Section 42(f)(1) Election Was Made,
the Succeeding Calendar Year
-------------------------------------------------------
Month of
Disposition 1987 1988 1989 1990 1991 1992
----------- ---- ---- ---- ---- ---- ----
Jan '97 79.95 82.08 84.67 87.70 91.25 95.32
Feb '97 79.95 81.83 84.41 87.43 90.96 95.00
Mar '97 79.95 81.59 84.15 87.16 90.67 94.69
Apr '97 79.95 81.35 83.91 86.90 90.40 94.39
May '97 79.95 81.11 83.66 86.64 90.13 94.09
Jun '97 79.95 80.88 83.42 86.40 89.87 93.81
Jul '97 79.95 80.65 83.19 86.15 89.61 93.54
Aug '97 79.95 80.43 82.96 85.92 89.36 93.27
Sep '97 79.95 80.21 82.74 85.68 89.12 93.01

1993 1994 1995 1996 1997
---- ---- ---- ---- ----
Jan '97 99.53 103.58 107.56 111.85 112.52
Feb '97 99.17 103.18 107.11 111.28 112.52
Mar '97 98.83 102.81 106.69 110.79 112.52
Apr '97 98.50 102.45 106.31 110.36 112.52
May '97 98.18 102.11 105.95 109.98 112.52
Jun '97 97.88 101.79 105.61 109.64 112.52
Jul '97 97.58 101.48 105.30 109.33 112.52
Aug '97 97.30 101.18 105.01 109.06 112.52
Sep '97 97.03 100.90 104.73 108.81 112.52


TABLE 3 REV. RUL. 98-3

Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage
of Total Credits

Calendar Year Building Placed in Service
or, if Section 42(f)(1) Election Was Made,
the Succeeding Calendar Year
-------------------------------------------------------
Month of
Disposition 1987 1988 1989 1990 1991 1992
----------- ---- ---- ---- ---- ---- ----
Jan '96 82.72 85.18 87.85 91.00 94.73 99.06
Feb '96 82.47 84.92 87.58 90.71 94.42 98.71
Mar '96 82.22 84.66 87.31 90.43 94.11 98.38
Apr '96 76.76 78.26 79.91 81.94 84.43 87.38
May '96 76.54 78.03 79.68 81.71 84.19 87.12
Jun '96 76.32 77.81 79.46 81.48 83.95 86.86
Jul '96 81.06 83.47 86.09 89.16 92.78 96.94
Aug '96 80.84 83.24 85.85 88.92 92.52 96.67
Sep '96 80.61 83.01 85.62 88.68 92.28 96.41
Oct '96 80.39 82.78 85.39 88.44 92.03 96.15
Nov '96 80.17 82.56 85.16 88.21 91.80 95.90
Dec '96 79.96 82.35 84.95 87.99 91.57 95.67

1993 1994 1995 1996
---- ---- ---- ----
Jan '96 103.57 107.87 111.88 112.52
Feb '96 103.18 107.41 111.30 112.52
Mar '96 102.80 106.98 110.81 112.52
Apr '96 90.40 93.16 95.61 97.21
May '96 90.12 92.86 95.32 97.21
Jun '96 89.85 92.58 95.06 97.21
Jul '96 101.25 105.33 109.16 112.52
Aug '96 100.96 105.04 108.90 112.52
Sep '96 100.68 104.76 108.66 112.52
Oct '96 100.41 104.49 108.44 112.52
Nov '96 100.16 104.25 108.24 112.52
Dec '96 99.92 104.02 108.06 112.52


Due to a miscalculation, Rev. Rul. 97-16, 1997-13 I.R.B. 4, Rev. Rul.
97-25, 1997-23 I.R.B. 4, and Rev. Rul. 97-34, 1997-34 I.R.B. 4, are in
error regarding the specific bond factor amounts for buildings placed in
service in calendar year 1987 and disposed of in calendar year 1997. The
present revenue ruling provides a complete list of the corrected amounts.
Taxpayers who posted bonds prior to the publication date of this revenue
ruling based upon the above mentioned bond factor amounts may continue to
rely on these figures under the authority of section 7805(b).

For a list of bond factor amounts applicable to dispositions occurring
during other calendar years, see the following revenue rulings: Rev. Rul.
90-60, 1990-2 C.B. 3, for dispositions occurring during calendar years
1987, 1988, and 1989;

Rev. Rul. 90-88, 1990-2 C.B. 7, for dispositions occurring during
calendar year 1990; Rev. Rul. 91-67, 1991-2 C.B. 13, for dispositions
occurring during calendar year 1991;

Rev. Rul. 92-101, 1992-2 C.B. 9, for dispositions occurring during
calendar year 1992; Rev. Rul 93-83, 1993-2 C.B. 6, for dispositions
occurring during calendar year 1993;

Rev. Rul. 94-71, 1994-2 C.B. 4, for dispositions occurring during
calendar year 1994; and Rev. Rul. 95-83, 1995-2 C.B. 8, for dispositions
occurring during calendar year 1995.


DRAFTING INFORMATION

The principal author of this revenue ruling is Jack Malgeri of the Of
Hsce of Assistant Chief Counsel (Passthroughs and Special Industries). For
further information regarding this revenue ruling, contact Mr. Malgeri at
(202) 622-3040 (not a toll-free call).

<<END RULING>>

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