rr-98-52.pdf

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October 20, 1998

# ADVANCE COPY OF INTERNAL REVENUE BULLETIN ITEM

Attached is an advance copy of Revenue Ruling 98-52,
describing the applicable federal rates.

It will appear in Internal Revenue Bulletin 1998-45, dated
November 9, 1998.

You may release this rev. rul. immediately.

Communications Division

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## Part I

Section 1274 .-- Determination of Issue Price in the Case of
Certain Debt Instruments Issued for Property

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

## Rev. Rul. 98-52

This revenue ruling provides various prescribed rates for
federal income tax purposes for November 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.

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## REV. RUL. 98-52 TABLE 1 Applicable Federal Rates (AFR) for November 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

4.47%

4.42%

4.40%

4.38%

110% AFR

4.92%

4.86%

4.83%

4.81%

120% AFR

5.37%

5.30%

5.27%

5.24%

130% AFR

5.83%

5.75%

5.71%

5.68%

Mid-Term

AFR

4.51%

4.46%

4.44%

4.42%

110% AFR

4.97%

4.91%

4.88%

4.86%

120% AFR

5.42%

5.35%

5.31%

5.29%

130% AFR

5.88%

5.80%

5.76%

5.73%

150% AFR

6.80%

6.69%

6.63%

6.60%

175% AFR

7.96%

7.81%

7.74%

7.69%

Long-Term

AFR

5.10%

5.04%

5.01%

4.99%

110% AFR

5.62%

5.54%

5.50%

5.48%

120% AFR

6.14%

6.05%

6.00%

5.98%

130% AFR

6.66%

6.55%

6.50%

6.46%

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REV. RUL. 98-52 TABLE 2
Adjusted AFR for November 1998
Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.30%

3.27%

3.26%

3.25%

Mid-term adjusted AFR

3.88%

3.84%

3.82%

3.81%

Long-term adjusted AFR

4.65%

4.60%

4.57%

4.56%

REV. RUL. 98-52 TABLE 3
Rates Under Section 382 for November 1998
Adjusted federal long-term rate for the current month
4.65%

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. )
5.02%

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## REV. RUL. 98-52 TABLE 4

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

REV. RUL. 98-52 TABLE 5 Rate Under Section 752 for November 1998

Appropriate percentage for the 70% present

value low-income housing credit

8.12%

Appropriate percentage for the 30% present

value low-income housing credit

3.48%

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
5.4%

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