IRS Revenue Ruling
1998-7

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 February
1998.


REV. RUL. 98-7

This revenue ruling provides various prescribed rates for federal
income tax purposes for February 1998 (the current month.) Table I
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. 98-7 TABLE 1

Applicable Federal Rates (AFR) for February 1998

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

Mid-Term
AFR 5.69% 5.61% 5.57% 5.55%
110% AFR 6.27% 6.17% 6.12% 6.09%
120% AFR 6.84% 6.73% 6.67% 6.64%
130% AFR 7.42% 7.29% 7.22% 7.18%
150% AFR 8.60% 8.42% 8.33% 8.28%
175% AFR 10.06% 9.82% 9.70% 9.62%

Long-Term
AFR 5.93% 5.84% 5.80% 5.77%
110% AFR 6.52% 6.42% 6.37% 6.34%
120% AFR 7.13% 7.01% 6.95% 6.91%
130% AFR 7.73% 7.59% 7.52% 7.47%


REV. RUL. 98-7 TABLE 2

Adjusted AFR for February 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.77% 3.74% 3.72% 3.71 %

Mid-term
adjusted AFR 4.23% 4.19% 4.17% 4.15%

Long-term
adjusted AFR 4.96% 4.90% 4.87% 4.85%


REV. RUL. 98-7 TABLE 3

Rates Under Section 382 for February 1998

Adjusted federal long-term rate for the current month 4.96%

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.) 5.23%


REV. RUL. 98-7 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.36%

Appropriate percentage for the 30% present value
low-income housing credit 3.58%


REV. RUL. 98-7 TABLE 5

Rate Under Section 7520 for February 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 6.8%

<<END RULING>>

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