Menu
Tax Notes logo
HOMETax Notes ResearchFederalIRS Guidancerevenue rulings

IRS ANNOUNCES APPLICABLE FEDERAL RATES FOR DECEMBER.

NOV. 19, 1998

Rev. Rul. 98-57; 1998-2 C.B. 695

DATED NOV. 19, 1998
DOCUMENT ATTRIBUTES
Citations: Rev. Rul. 98-57; 1998-2 C.B. 695

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.

                        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%

 

 

                     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

 

 value low-income housing credit                           3.49%

 

 

                        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%
DOCUMENT ATTRIBUTES
Copy RID