rr-98-57.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. 98-57

This revenue ruling provides various prescribed rates for
federal income tax purposes for December 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 1999
interest rate for purposes of sections 846 and 807.

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REV. RUL. 98-57 TABLE 1 Applicable Federal Rates (AFR) for December 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

4.33%

4.28%

4.26%

4.24%

110% AFR

4.77%

4.71%

4.68%

4.66%

120% AFR

5.21%

5.14%

5.11%

5.09%

130% AFR

5.64%

5.56%

5.52%

5.50%

Mid-Term

AFR

4.52%

4.47%

4.45%

4.43%

110% AFR

4.98%

4.92%

4.89%

4.87%

120% AFR

5.43%

5.36%

5.32%

5.30%

130% AFR

5.89%

5.81%

5.77%

5.74%

150% AFR

6.82%

6.71%

6.65%

6.62%

175% AFR

7.97%

7.82%

7.75%

7.70%

Long-Term

AFR

5.25%

5.18%

5.15%

5.12%

110% AFR

5.78%

5.70%

5.66%

5.63%

120% AFR

6.32%

6.22%

6.17%

6.14%

130% AFR

6.84%

6.73%

6.67%

6.64%

REV. RUL. 98-57 TABLE 2 Adjusted AFR for December 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.20%

3.17%

3.16%

3.15%

Mid-term adjusted AFR

3.89%

3.85%

3.83%

3.82%

Long-term adjusted AFR

4.67%

4.62%

4.59%

4.58%

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### REV. RUL. 98-57 TABLE 3

Rates Under Section 382 for December 1998
Adjusted federal long-term rate for the current month
4.67%

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. )

4.80%

#### REV. RUL. 98-57 TABLE 4

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

Appropriate percentage for the 70% present

value low-income housing credit

8.14%

Appropriate percentage for the 30% present

3.49%

value low-income housing credit

#### REV. RUL. 98-57 TABLE 5

Rate Under Section 7520 for December 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
5.4%

REV. RUL. 98-57 TABLE 6
Rate Under Sections 846 and 807
Applicable rate of interest for 1999
for purposes of sections 846 and 807
6.3%