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IRS ANNOUNCES APPLICABLE FEDERAL RATES FOR FEBRUARY.

JAN. 21, 1998

Rev. Rul. 98-7; 1998-1 C.B. 421

DATED JAN. 21, 1998
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Citations: Rev. Rul. 98-7; 1998-1 C.B. 421

Rev. Rul. 98-7

[1] 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

 

                     ___________________________________________

 

                     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%

 

 

                        REV. RUL. 98-7 TABLE 2

 

 

                    Adjusted AFR for February 1998

 

 

                                Period for Compounding

 

                     ___________________________________________

 

                     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%

 

 

                        REV. RUL. 98-7 TABLE 4

 

 

            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%
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