IRS Revenue Ruling
1998-17

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 April 1998.


REV. RUL. 98-18

This revenue ruling provides various prescribed rates for federal
income tax purposes for April 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. 98-18 TABLE 1

Applicable Federal Rates (AFR) for April 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.51% 5.44% 5.40% 5.38%
110% AFR 6.07% 5.98% 5.94% 5.91%
120% AFR 6.64% 6.53% 6.48% 6.44%
130% AFR 7.19% 7.07% 7.01% 6.97%

Mid-Term
AFR 5.70% 5.62% 5.58% 5.56%
110% AFR 6.28% 6.18% 6.13% 6.10%
120% AFR 6.85% 6.74% 6.68% 6.65%
130% AFR 7.44% 7.31% 7.24% 7.20%
150% AFR 8.61% 8.43% 8.34% 8.29%
175% AFR 10.08% 9.84% 9.72% 9.64%

Long-Term
AFR 5.98% 5.89% 5.85% 5.82%
110% AFR 6.58% 6.48% 6.43% 6.39%
120% AFR 7.19% 7.07% 7.01% 6.97%
130% AFR 7.81% 7.66% 7.59% 7.54%


REV. RUL. 98-18 TABLE 2

Adjusted AFR for April 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.67% 3.64% 3.62% 3.61%

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

Long-term
adjusted AFR 5.04% 4.98% 4.95% 4.93%


REV. RUL. 98-18 TABLE 3

Rates Under Section 382 for April 1998

Adjusted federal long-term rate for the current month 5.04%

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.) 5.04%


REV. RUL. 98-18 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.37%
Appropriate percentage for the 30% present value
low-income housing credit 3.59%


REV. RUL. 98-18 TABLE 5

Rate Under Section 7520 for April 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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