Rev. Rul. 88-15

1988-1 C.B. 308, 1988-10 I.R.B. 5.

                       Internal Revenue Service

                                 Revenue Ruling

     FEDERAL RATES; ADJUSTED FEDERAL RATES; ADJUSTED FEDERAL LONG-TERM RATE,

                          AND THE LONG-TERM EXEMPT RATE

                          Published: February 23, 1988

Section 1274. - Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

(Also Sections 42, 280G, 382, 467, 468, 483, 1288, 7872.)

  Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for March 1988.

  This revenue ruling provides various prescribed rates for federal income tax purposes for March 1988 (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). Finally, 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.

                        REV. RUL. 88-15 TABLE 1
             Applicable Federal Rates (AFR) for March 1988
                                       Period for Compounding
                      Annual          Semiannual    Quarterly   Monthly
  Short-Term
         AFR                   7.14%        7.02%        6.96%    6.92%
    110% AFR                   7.87%        7.72%        7.65%    7.60%
    120% AFR                   8.60%        8.42%        8.33%    8.28%
    Mid-Term
         AFR                   8.15%        7.99%        7.91%    7.86%
    110% AFR                   8.98%        8.79%        8.70%    8.63%
    120% AFR                   9.82%        9.59%        9.48%    9.40%
   Long-Term
         AFR                   8.63%        8.45%        8.36%    8.30%
    110% AFR                   9.52%        9.30%        9.19%    9.12%
    120% AFR                  10.40%       10.14%       10.01%    9.93%
                        REV. RUL. 88-15 TABLE 2
                      Adjusted AFR for March 1988
              Period for Compounding
  Short-term
adjusted AFR                   5.08%        5.02%        4.99%    4.97%
    Mid-term
adjusted AFR                   5.79%        5.71%        5.67%    5.64%
   Long-term
adjusted AFR                   7.07%        6.95%        6.89%    6.85%

                      REV. RUL. 88-15 TABLE 3
              Rates Under Section 382 for March 1988
Adjusted federal long-term rate for the current month 7.07%
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). 7.54%
                      REV. RUL. 88-15 TABLE 4
          Appropriate Percentages Under Section 42(b)(2)
                          for March 1988
Appropriate percentage for the 70% present value
low-income housing credit                                     8.99%
Appropriate percentage for the 30% present value
low-income housing credit                                     3.85%

Rev. Rul. 88-15, 1988-1 C.B. 308, 1988-10 I.R.B. 5.