rr-98-7.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. 98-7

This revenue ruling provides various prescribed rates for
federal income tax purposes for February 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. 98-7 TABLE 1
Applicable Federal Rates (AFR) for February 1998
Period for Compounding

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REV. RUL. 98-7 TABLE 2 Adjusted AFR for February 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

5.54%

5.47%

5.43%

5.41%

110% AFR

6.11%

6.02%

5.98%

5.95%

120% AFR

6.67%

6.56%

6.51%

6.47%

130% AFR

7.24%

7.11%

7.05%

7.01%

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

5.93%

5.84%

5.80%

5.77%

110% AFR

6.52%

6.42%

6.37%

6.34%

120% AFR

7.13%

7.01%

6.95%

6.91%

130% AFR

7.73%

7.59%

7.52%

7.47%

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.77%

3.74%

3.72%

3.71%

Mid-term adjusted AFR

4.23%

4.19%

4.17%

4.15%

Long-term adjusted AFR

4.96%

4.90%

4.87%

4.85%

REV. RUL.

98-7 TABLE

3

Rates Under Section 382 for February 1998
Adjusted federal long-term rate for the current month
4.96%

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. )
5.23%

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

Appropriate percentage for the 70% present
value low-income housing credit
8.36%

Appropriate percentage for the 30% present
value low-income housing credit
3.58%

REV. RUL. 98-7 TABLE 5

Rate Under Section 7520 for February 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
6.8%