rr-98-28.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. 98-28

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

REV. RUL. 98-28 TABLE 1
Applicable Federal Rates (AFR) for June 1998

Period for Compounding

Annual
Semiannual
Quarterly
Monthly

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REV. RUL. 98-28 TABLE 2 Adjusted AFR for June 1998 Period for Compounding

Short-Term

AFR

5.58%

5.50%

5.46%

5.44%

110% AFR

6.14%

6.05%

6.00%

5.98%

120% AFR

6.71%

6.60%

6.55%

6.51%

130% AFR

7.28%

7.15%

7.09%

7.05%

Mid-Term

AFR

5.77%

5.69%

5.65%

5.62%

110% AFR

6.36%

6.26%

6.21%

6.18%

120% AFR

6.95%

6.83%

6.77%

6.73%

130% AFR

7.54%

7.40%

7.33%

7.29%

150% AFR

8.72%

8.54%

8.45%

8.39%

175% AFR

10.21%

9.96%

9.84%

9.76%

Long-Term

AFR

6.02%

5.93%

5.89%

5.86%

110% AFR

6.63%

6.52%

6.47%

6.43%

120% AFR

7.25%

7.12%

7.06%

7.02%

130% AFR

7.86%

7.71%

7.64%

7.59%

REV. RUL. 98-28 TABLE 3 Rates Under Section 382 for June 1998

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.86%

3.82%

3.80%

3.79%

Mid-term adjusted AFR

4.43%

4.38%

4.36%

4.34%

Long-term adjusted AFR

5.15%

5.09%

5.06%

5.04%

Adjusted federal long-term rate for the current month
5.15%

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.)
5.15%

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### REV. RUL. 98-28 TABLE 4 Appropriate Percentages Under Section 42 (b) (2) for June 1998

REV. RUL. 98-28 TABLE 5

Appropriate percentage for the 70% present

value low-income housing credit

8.38%

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

3.59%

Rate Under Section 7520 for June 1998

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
7.0%