rr-98-43.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. 98-43

This revenue ruling provides various prescribed rates for
federal income tax purposes for September 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. 98-43 TABLE 1 Applicable Federal Rates (AFR) for September 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-Term

AFR

5.42%

5.35%

5.31%

5.29%

110% AFR

5.98%

5.89%

5.85%

5.82%

120% AFR

6.52%

6.42%

6.37%

6.34%

130% AFR

7.08%

6.96%

6.90%

6.86%

Mid-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%

150% AFR

8.38%

8.21%

8.13%

8.07%

175% AFR

9.80%

9.57%

9.46%

9.38%

Long-Term

AFR

5.74%

5.66%

5.62%

5.59%

110% AFR

6.33%

6.23%

6.18%

6.15%

120% AFR

6.91%

6.79%

6.73%

6.70%

130% AFR

7.50%

7.36%

7.29%

7.25%

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REV. RUL. 98-43 TABLE 2 Adjusted AFR for September 1998 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.66%

3.63%

3.61%

3.60%

Mid-term adjusted AFR

4.24%

4.20%

4.18%

4.16%

Long-term adjusted AFR

5.02%

4.96%

4.93%

4.91%

REV. RUL. 98-43 TABLE 3

Rates Under Section 382 for September 1998
Adjusted federal long-term rate for the current month
5.02%

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. )
5.02%

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REV. RUL. 98-43 TABLE 4 Appropriate Percentages Under Section 42 (b) (2) for September 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%

REV. RUL. 98-43 TABLE 5
Rate Under Section 7520 for September 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
6.6%