IRS Revenue Ruling
1998-28

 
 Code Secs. 1274, 42, 280G, 382, 412, 467 ....



<<FULL TEXT>>

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846,
1288, 7502, 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 June 1998.


REV. RUL. 98-28

This revenue ruling provides various prescribed rates for federal
income tax purposes for June 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. 98-28 TABLE 1

Applicable Federal Rates (AFR) for June 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.58% 5.50% 5.46% 5.44%
110% AFR 6.14% 6.05% 6.00% 5.98%
120% AFR 6.71% 6.60% 6.55% 6.51%
130% AFR 7.28% 7.15% 7.09% 7.05%

Mid-Term
AFR 5.77% 5.69% 5.65% 5.62%
110% AFR 6.36% 6.26% 6.21% 6.18%
120% AFR 6.95% 6.83% 6.77% 6.73%
130% AFR 7.54% 7.40% 7.33% 7.29%
150% AFR 8.72% 8.54% 8.45% 8.39%
175% AFR 10.21% 9.96% 9.84% 9.76%

Long-Term
AFR 6.02% 5.93% 5.89% 5.86%
110% AFR 6.63% 6.52% 6.47% 6.43%
120% AFR 7.25% 7.12% 7.06% 7.02%
130% AFR 7.86% 7.71% 7.64% 7.59%


REV. RUL. 98-28 TABLE 2

Adjusted AFR for June 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.86% 3.82% 3.80% 3.79%
Mid-term
adjusted AFR 4.43% 4.38% 4.36% 4.34%
Long-term
adjusted AFR 5.15% 5.09% 5.06% 5.04%


REV. RUL. 98-28 TABLE 3

Rates Under Section 382 for June 1998

Adjusted federal long-term rate for the current month 5.15%

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) 5.15%


REV. RUL. 98-28 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.38%
Appropriate percentage for the 30% present value
low-income housing credit 3.59%


REV. RUL. 98-28 TABLE 5

Rate Under Section 7520 for June 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 7.0%

<<END RULING>>

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