rr-98-33.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. 98-33

This revenue ruling provides various prescribed rates for
federal income tax purposes for July 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. 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. Finally, Table 6 contains the
blended annual rate for purposes of section 7872.

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REV. RUL.

98-33

TABLE

1

Applicable Federal

Rates

(AFR)

for July 1998

## Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

5.56%

5.48%

5.44%

5.42%

110% AFR

6.12%

6.03%

5.99%

5.96%

120% AFR

6.69%

6.58%

6.53%

6.49%

130% AFR

7.25%

7.12%

7.06%

7.02%

Mid-Term

AFR

5.68%

5.60%

5.56%

5.54%

110% AFR

6.25%

6.16%

6.11%

6.08%

120% AFR

6.83%

6.72%

6.66%

6.63%

130% AFR

7.41%

7.28%

7.21%

7.17%

150% AFR

8.58%

8.40%

8.31%

8.26%

175% AFR

10.04%

9.80%

9.68%

9.61%

Long-Term

AFR

5.88%

5.80%

5.76%

5.73%

110% AFR

6.48%

6.38%

6.33%

6.30%

120% AFR

7.08%

6.96%

6.90%

6.86%

130% AFR

7.68%

7.54%

7.47%

7.42%

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REV. RUL. 98-33 TABLE 2 Adjusted AFR for July 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.80%

3.76%

3.74%

3.73%

Mid-term adjusted AFR

4.22%

4.18%

4.16%

4.14%

Long-term adjusted AFR

5.00%

4.94%

4.91%

4.89%

REV. RUL. 98-33 TABLE 3

Rates Under Section 382 for July 1998
Adjusted federal long-term rate for the current month
5.00%

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. 98-33 TABLE 4

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

REV. RUL. 98-33 TABLE 5 Rate Under Section 7520 for July 1998

Appropriate percentage for the 70% present

value low-income housing credit

8.35%

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%

REV. RUL. 98-33 TABLE 6
Blended Annual Rate for 1998

Section 7872 (e) (2) blended annual rate for 1998
5.63%