rr-98-18.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. 98-18

This revenue ruling provides various prescribed rates for
federal income tax purposes for April 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. 98-18 TABLE 1
Applicable Federal Rates (AFR) for April 1998

Period for Compounding

Annual
Semiannual
Quarterly
Monthly

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Short-Term

AFR

5.51%

5.44%

5.40%

5.38%

110% AFR

6.07%

5.98%

5.94%

5.91%

120% AFR

6.64%

6.53%

6.48%

6.44%

130% AFR

7.19%

7.07%

7.01%

6.97%

Mid-Term

AFR

5.70%

5.62%

5.58%

5.56%

110% AFR

6.28%

6.18%

6.13%

6.10%

120% AFR

6.85%

6.74%

6.68%

6.65%

130% AFR

7.44%

7.31%

7.24%

7.20%

150% AFR

8.61%

8.43%

8.34%

8.29%

175% AFR

10.08%

9.84%

9.72%

9.64%

Long-Term

AFR

5.98%

5.89%

5.85%

5.82%

110% AFR

6.58%

6.48%

6.43%

6.39%

120% AFR

7.19%

7.07%

7.01%

6.97%

130% AFR

7.81%

7.66%

7.59%

7.54%

REV. RUL. 98-18 TABLE 2
Adjusted AFR for April 1998
Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.67%

3.64%

3.62%

3.61%

Mid-term adjusted AFR

4.24%

4.20%

4.18%

4.16%

Long-term adjusted AFR

5.04% REV. RUL.

98-18 TABLE 3 4.98%

4.95%

4.93%

Rates Under Section 382 for April 1998
Adjusted federal long-term rate for the current month
5.04%

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.)
5.04%

REV. RUL. 98-18 TABLE 4

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

Appropriate percentage for the 70% present

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value low-income housing credit
8.37%

Appropriate percentage for the 30% present
value low-income housing credit
3.59%

REV. RUL. 98-18 TABLE 5

Rate Under Section 7520 for April 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%