rr-98-11.pdf

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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. 98-11

This revenue ruling provides various prescribed rates for
federal income tax purposes for March 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. 98-11 TABLE 1 Applicable Federal Rates (AFR) for March 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

5.39%

5.32%

5.29%

5.26%

110% AFR

5.94%

5.85%

5.81%

5.78%

120% AFR

6.48%

6.38%

6.33%

6.30%

130% AFR

7.04%

6.92%

6.86%

6.82%

Mid-Term

AFR

5.59%

5.51%

5.47%

5.45%

110% AFR

6.15%

6.06%

6.01%

5.98%

120% AFR

6.72%

6.61%

6.56%

6.52%

130% AFR

7.29%

7.16%

7.10%

7.06%

150% AFR

8.44%

8.27%

8.19%

8.13%

175% AFR

9.87%

9.64%

9.53%

9.45%

Long-Term

AFR

5.91%

5.83%

5.79%

5.76%

110% AFR

6.51%

6.41%

6.36%

6.33%

120% AFR

7.12%

7.00%

6.94%

6.90%

130% AFR

7.72%

7.58%

7.51%

7.46%

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REV. RUL. 98-11 TABLE 2 Adjusted AFR for March 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.77%

3.74%

3.72%

3.71%

Mid-term adjusted AFR

4.14%

4.10%

4.08%

4.07%

Long-term adjusted AFR

4.88%

4.82%

4.79%

4.77%

REV. RUL. 98-11 TABLE 3

Rates Under Section 382 for March 1998
Adjusted federal long-term rate for the current month
4.88%

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. )
5.10%

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## REV. RUL. 98-11 TABLE 4 Appropriate Percentages Under Section 42 (b) (2) for March 1998

Appropriate percentage for the 70% present

REV. RUL. 98-11 TABLE 5 Rate Under Section 7520 for March 1998

value low-income housing credit

8.35%

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

3.58%

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%

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