rr-98-23.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. 98-23

This revenue ruling provides various prescribed rates for
federal income tax purposes for May 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. 98-23 TABLE 1 Applicable Federal Rates (AFR) for May 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

5.50%

5.43%

5.39%

5.37%

110% AFR

6.06%

5.97%

5.93%

5.90%

120% AFR

6.63%

6.52%

6.47%

6.43%

130% AFR

7.18%

7.06%

7.00%

6.96%

Mid-Term

AFR

5.69%

5.61%

5.57%

5.55%

110% AFR

6.27%

6.17%

6.12%

6.09%

120% AFR

6.84%

6.73%

6.67%

6.64%

130% AFR

7.42%

7.29%

7.22%

7.18%

150% AFR

8.60%

8.42%

8.33%

8.28%

175% AFR

10.06%

9.82%

9.70%

9.62%

Long-Term

AFR

5.94%

5.85%

5.81%

5.78%

110% AFR

6.54%

6.44%

6.39%

6.36%

120% AFR

7.14%

7.02%

6.96%

6.92%

130% AFR

7.75%

7.61%

7.54%

7.49%

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REV. RUL. 98-23 TABLE 2 Adjusted AFR for May 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.73%

3.70%

3.68%

3.67%

Mid-term adjusted AFR

4.30%

4.25%

4.23%

4.21%

Long-term adjusted AFR

5.05%

4.99%

4.96%

4.94%

REV. RUL. 98-23 TABLE 3

Rates Under Section 382 for May 1998
Adjusted federal long-term rate for the current month
5.05%

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. )
5.05%

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REV. RUL. 98-23 TABLE 4
Appropriate Percentages Under Section 42 (b) (2)
for May 1998

Appropriate percentage for the 70% present

REV. RUL. 98-23 TABLE 5 Rate Under Section 7520 for May 1998

value low-income housing credit

8.36%

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%