IRS Revenue Ruling
1999-11

 
 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.)

Determination of issue price in the case of certain debt instruments
issued for property. This ruling provides various prescribed rates for
federal income tax purposes for March 1999.


REV. RUL. 99-11

This revenue ruling provides various prescribed rates for federal
income tax purposes for March 1999 (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. 99-11 TABLE 1

Applicable Federal Rates (AFR) for March 1999

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 4.67% 4.62% 4.59% 4.58%
110% AFR 5.14% 5.08% 5.05% 5.03%
120% AFR 5.62% 5.54% 5.50% 5.48%
130% AFR 6.10% 6.01% 5.97% 5.94%

Mid-Term
AFR 4.83% 4.77% 4.74% 4.72%
110% AFR 5.32% 5.25% 5.22% 5.19%
120% AFR 5.80% 5.72% 5.68% 5.65%
130% AFR 6.30% 6.20% 6.15% 6.12%
150% AFR 7.29% 7.16% 7.10% 7.06%
175% AFR 8.52% 8.35% 8.26% 8.21%

Long-Term
AFR 5.30% 5.23% 5.20% 5.17%
110% AFR 5.83% 5.75% 5.71% 5.68%
120% AFR 6.38% 6.28% 6.23% 6.20%
130% AFR 6.92% 6.80% 6.74% 6.71%


REV. RUL. 99-11 TABLE 2

Adjusted AFR for March 1999

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 3.09% 3.07% 3.06% 3.05%

Mid-term
adjusted AFR 3.77% 3.74% 3.72% 3.71%

Long-term
adjusted AFR 4.68% 4.63% 4.60% 4.59%


REV. RUL. 99-11 TABLE 3

Rates Under Section 382 for March 1999

Adjusted federal long-term rate for the current month 4.68%

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.) 4.71%


REV. RUL. 99-11 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for March 1999

Appropriate percentage for the 70% present value
low-income housing credit 8.18%
Appropriate percentage for the 30% present value
low-income housing credit 3.51%


REV. RUL. 99-11 TABLE 5

Rate Under Section 7520 for March 1999

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 5.8%

<<END RULING>>
 

TO CONTACT
DON FITCH CPA

Phone Don Fitch CPA Toll Free at (877)CPA-Help or (877)272-4357 or on our Direct Line at (760)674-1722.