IRS Revenue Ruling
1998-23

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 May 1998.


REV. RUL. 98-23

This revenue ruling provides various prescribed rates for federal
income tax purposes for May 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. 98-23 TABLE 1

Applicable Federal Rates (AFR) for May 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.50% 5.43% 5.39% 5.37%
110% AFR 6.06% 5.97% 5.93% 5.90%
120% AFR 6.63% 6.52% 6.47% 6.43%
130% AFR 7.18% 7.06% 7.00% 6.96%

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 5.94% 5.85% 5.81% 5.78%
110% AFR 6.54% 6.44% 6.39% 6.36%
120% AFR 7.14% 7.02% 6.96% 6.92%
130% AFR 7.75% 7.61% 7.54% 7.49%


REV. RUL. 98-23 TABLE 2

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.73% 3.70% 3.68% 3.67%

Mid-term
adjusted AFR 4.30% 4.25% 4.23% 4.21%

Long-term
adjusted AFR 5.05% 4.99% 4.96% 4.94%


REV. RUL. 98-23 TABLE 3

Rates Under Section 382 for May 1998

Adjusted federal long-term rate for the current month 5.05%

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.) 5.05%


REV. RUL. 98-23 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for May 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. 98-23 TABLE 5

Rate Under Section 7520 for May 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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