rr-99-21.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. 99-21

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

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REV. RUL. 99-21 TABLE 1 Applicable Federal Rates (AFR) for May 1999 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

4.90%

4.84%

4.81%

4.79%

110% AFR

5.39%

5.32%

5.29%

5.26%

120% AFR

5.89%

5.81%

5.77%

5.74%

130% AFR

6.39%

6.29%

6.24%

6.21%

Mid-Term

AFR

5.22%

5.15%

5.12%

5.10%

110% AFR

5.75%

5.67%

5.63%

5.60%

120% AFR

6.28%

6.18%

6.13%

6.10%

130% AFR

6.81%

6.70%

6.64%

6.61%

150% AFR

7.88%

7.73%

7.66%

7.61%

175% AFR

9.21%

9.01%

8.91%

8.85%

Long-Term

AFR

5.66%

5.58%

5.54%

5.52%

110% AFR

6.23%

6.14%

6.09%

6.06%

120% AFR

6.81%

6.70%

6.64%

6.61%

130% AFR

7.38%

7.25%

7.19%

7.14%

REV. RUL. 99-21 TABLE 2 Adjusted AFR for May 1999

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.30%

3.27%

3.26%

3.25%

Mid-term adjusted AFR

3.96%

3.92%

3.90%

3.89%

Long-term adjusted AFR

4.82%

4.76%

4.73%

4.71%

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# REV. RUL. 99-21 TABLE 3

Rates Under Section 382 for May 1999
Adjusted federal long-term rate for the current month
4.82%

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. )
4.82%

## REV. RUL. 99-21 TABLE 4

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

Appropriate percentage for the 70% present

value low-income housing credit

8.27%

Appropriate percentage for the 30% present

3.54%

value low-income housing credit

## REV. RUL. 99-21 TABLE 5

Rate Under Section 7520 for May 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
6.2%