Rev. Rul. 87-33
1987-1 C.B. 255.
Internal Revenue Service
Revenue Ruling
Published: May 4, 1987
Section 1274. -- Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property
(Also Sections 280G, 382, 383, 467, 468, 483, 1273, 1288, 7872; 1.483-1.)
For purposes of section 1274(d) of the Internal Revenue Code, the short-term, mid-term, and long-term applicable federal rates (AFR) for the month of May 1987 are as follows:
PERIOD FOR COMPOUNDING
Annual Semiannual Quarterly Monthly
______ __________ _________ ______
Short-Term
__________
AFR 6.51% 6.41% 6.36% 6.33%
110% AFR 7.17% 7.05% 6.99% 6.95%
120% AFR 7.84% 7.69% 7.62% 7.57%
Mid-Term
________
AFR 7.32% 7.19% 7.13% 7.08%
110% AFR 8.07% 7.91% 7.83% 7.78%
120% AFR 8.82% 8.63% 8.54% 8.48%
Long-Term
_________
AFR 7.83% 7.68% 7.61% 7.56%
110% AFR 8.63% 8.45% 8.36% 8.30%
120% AFR 9.43% 9.22% 9.12% 9.05%
For purposes of section 1288 of the Code, the short-term, mid-term, and long- term adjusted federal rates (adjusted AFR) for the month of May 1987 are as follows:
PERIOD FOR COMPOUNDING
Annual Semiannual Quarterly Monthly
______ __________ _________ _______
Short-term
__________
AFR 3.98% 3.94% 3.92% 3.91%
Mid-term
________
AFR 4.99% 4.93% 4.90% 4.88%
Long-term
_________
AFR 6.29% 6.19% 6.14% 6.11%
For purposes of section 382 of the Code, the adjusted federal long-term rate and the long-term tax-exempt rate for May 1987 are as follows:
Adjusted federal long-term rate for May 6.29%
Long-term tax-exempt rate for ownership changes
during May (the highest of the adjusted federal
long-term rates for the current month and the
prior two months) 6.29%
Rev. Rul. 87-33, 1987-1 C.B. 255