rr-98-50.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. 98-50

This revenue ruling provides various prescribed rates for
federal income tax purposes for October 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. 98-50 TABLE 1 Applicable Federal Rates (AFR) for October 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

5.06%

5.00%

4.97%

4.95%

110% AFR

5.58%

5.50%

5.46%

5.44%

120% AFR

6.09%

6.00%

5.96%

5.93%

130% AFR

6.61%

6.50%

6.45%

6.41%

Mid-Term

AFR

5.12%

5.06%

5.03%

5.01%

110% AFR

5.65%

5.57%

5.53%

5.51%

120% AFR

6.16%

6.07%

6.02%

5.99%

130% AFR

6.69%

6.58%

6.53%

6.49%

150% AFR

7.73%

7.59%

7.52%

7.47%

175% AFR

9.06%

8.86%

8.76%

8.70%

Long-Term

AFR

5.46%

5.39%

5.35%

5.33%

110% AFR

6.02%

5.93%

5.89%

5.86%

120% AFR

6.57%

6.47%

6.42%

6.38%

130% AFR

7.13%

7.01%

6.95%

6.91%

REV. RUL. 98-50 TABLE 2 Adjusted AFR for October 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.52%

3.49%

3.47%

3.46%

Mid-term adjusted AFR

4.05%

4.01%

3.99%

3.98%

Long-term adjusted AFR

4.80%

4.74%

4.71%

4.69%

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### REV. RUL. 98-50 TABLE 3

Rates Under Section 382 for October 1998
Adjusted federal long-term rate for the current month
4.80%

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%

REV. RUL. 98-50 TABLE 4

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

Appropriate percentage for the 70% present
value low-income housing credit
8.23%

Appropriate percentage for the 30% present
value low-income housing credit
3.53%

REV. RUL. 98-50 TABLE 5
Rate Under Section 7520 for October 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
6.2%