rr-98-36.pdf

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July 21, 1998

# ADVANCE COPY OF INTERNAL REVENUE BULLETIN ITEM

Attached is an advance copy of Revenue Ruling 98-36,
describing the applicable federal rates.

It will appear in Internal Revenue Bulletin 1998-31, dated
August 3, 1998.

You may release this rev. rul. immediately.

Communications Division

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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. 98-36

This revenue ruling provides various prescribed rates for
federal income tax purposes for August 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.

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## REV. RUL. 98-36 TABLE 1 Applicable Federal Rates (AFR) for August 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

5.48%

5.41%

5.37%

5.35%

110% AFR

6.04%

5.95%

5.91%

5.88%

120% AFR

6.60%

6.49%

6.44%

6.40%

130% AFR

7.15%

7.03%

6.97%

6.93%

Mid-Term

AFR

5.57%

5.49%

5.45%

5.43%

110% AFR

6.13%

6.04%

6.00%

5.97%

120% AFR

6.70%

6.59%

6.54%

6.50%

130% AFR

7.27%

7.14%

7.08%

7.04%

150% AFR

8.41%

8.24%

8.16%

8.10%

175% AFR

9.84%

9.61%

9.50%

9.42%

Long-Term

AFR

5.72%

5.64%

5.60%

5.57%

110% AFR

6.30%

6.20%

6.15%

6.12%

120% AFR

6.88%

6.77%

6.71%

6.68%

130% AFR

7.46%

7.33%

7.26%

7.22%

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### REV. RUL. 98-36 TABLE 2 Adjusted AFR for August 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.66%

3.63%

3.61%

3.60%

Mid-term adjusted AFR

4.25%

4.21%

4.19%

4.17%

Long-term adjusted AFR

5.01%

4.95%

4.92%

4.90%

REV. RUL. 98-36 TABLE 3
Rates Under Section 382 for August 1998
Adjusted federal long-term rate for the current month
5.01%

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. 98-36 TABLE 4 Appropriate Percentages Under Section 42 (b) (2) for August 1998

REV. RUL. 98-36 TABLE 5 Rate Under Section 7520 for August 1998

Appropriate percentage for the 70% present

value low-income housing credit

8.32%

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

3.57%

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%