IRS Revenue Ruling
1998-33

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

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(Also sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846,
1288, 7520, 7872.)


REV. RUL. 98-33

This revenue ruling provides various prescribed rates for federal
income tax purposes for July 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. 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. Finally, Table 6 contains the blended annual rate for
purposes of section 7872.


REV. RUL. 98-33 TABLE 1

Applicable Federal Rates (AFR) for July 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 5.56% 5.48% 5.44% 5.42%
110% AFR 6.12% 6.03% 5.99% 5.96%
120% AFR 6.69% 6.58% 6.53% 6.49%
130% AFR 7.25% 7.12% 7.06% 7.02%

Mid-Term
AFR 5.68% 5.60% 5.56% 5.54%
110% AFR 6.25% 6.16% 6.11% 6.08%
120% AFR 6.83% 6.72% 6.66% 6.63%
130% AFR 7.41% 7.28% 7.21% 7.17%
150% AFR 8.58% 8.40% 8.31% 8.26%
175% AFR 10.04% 9.80% 9.68% 9.61%

Long-Term
AFR 5.88% 5.80% 5.76% 5.73%
110% AFR 6.48% 6.38% 6.33% 6.30%
120% AFR 7.08% 6.96% 6.90% 6.86%
130% AFR 7.68% 7.54% 7.47% 7.42%


REV. RUL. 98-33 TABLE 2

Adjusted AFR for July 1998

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.80% 3.76% 3.74% 3.73%

Mid-term
adjusted AFR 4.22% 4.18% 4.16% 4.14%

Long-term
adjusted AFR 5.00% 4.94% 4.91% 4.89%


REV. RUL. 98-33 TABLE 3

Rates Under Section 382 for July 1998

Adjusted federal long-term rate for the current month 5.00%

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. 98-33 TABLE 4

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

Appropriate percentage for the 70% present value
low-income housing credit 8.35%
Appropriate percentage for the 30% present value
low-income housing credit 3.58%


REV. RUL. 98-33 TABLE 5

Rate Under Section 7520 for July 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%


REV. RUL. 98-33 TABLE 6

Blended Annual Rate for 1998

Section 7872(e)(2) blended annual rate for 1998 5.63%

<<END RULING>>
 

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