Rev. Rul. 89-39

1989-1 C.B. 264, 1989-14 I.R.B. 14.

                       Internal Revenue Service

                                 Revenue Ruling

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

                          AND THE LONG-TERM EXEMPT RATE

                           Published: March 21, 1989

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 April 1989.

  This revenue ruling provides various prescribed rates for federal income tax purposes for April 1989 (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. 89-39 TABLE 1
    Applicable Federal Rates (AFR) for April 1988
                          Period for Compounding
             Annual   Semiannual  Quarterly  Monthly
Short-Term
       AFR     9.62%       9.40%      9.29%     9.22%
  110% AFR    10.61%      10.34%     10.21%    10.12%
  120% AFR    11.60%      11.28%     11.13%    11.02%
  Mid-Term
       AFR     9.60%       9.38%      9.27%     9.20%
  110% AFR    10.59%      10.32%     10.19%    10.10%
  120% AFR    11.58%      11.26%     11.11%    11.00%
Long-Term
       AFR     9.40%       9.19%      9.09%     9.02%
  110% AFR    10.37%      10.11%      9.99%     9.90%
  120% AFR    11.33%      11.03%     10.88%    10.78%

              Rev. Rul. 89-39 TABLE 2
            Adjusted AFR for April 1989
                          Period for Compounding
              Annual  Semiannual  Quarterly  Monthly
  Short-term
adjusted AFR   6.37%       6.27%      6.22%    6.19%
    Mid-term
adjusted AFR   6.81%       6.70%      6.64%    6.61%
   Long-term
adjusted AFR   7.32%       7.19%      7.13%    7.08%

                   REV. RUL. 89-39 TABLE 3
           Rates Under Section 382 for April 1989
Adjusted federal long-term rate for the current month   7.32%
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).                                            7.32%
                    REV. RUL. 89-39 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for April 1989
Appropriate percentage for the 70% present
value low-income housing credit                           9.26%
Appropriate percentage for the 30% present
value low-income housing credit                           3.97%

Rev. Rul. 89-39, 1989-1 C.B. 264, 1989-14 I.R.B. 14.