Rev. Rul. 89-92

1989-2 C.B. 210, 1989-32 I.R.B. 52.

                       Internal Revenue Service

                                 Revenue Ruling

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

                            AND LONG-TERM EXEMPT RATE

                            Published: July 20, 1989

SECTION 1274. -- DETERMINATION OF ISSUE PRICE IN THE CASE OF CERTAIN DEBT INSTRUMENTS ISSUED FOR PROPERTY

(Also Sections 42, 280G, 382, 412, 467, 468, 483, 1288, 7520, 7872.)

  Federal rates; adjusted federal rates; adjusted federal long-term rate, and long-term exempt rate. For purposes of sections 1274, 1288, 382,and other sections of the Code tables set forth the rates for August 1989.

  This revenue ruling provides various prescribed rates for federal income tax purposes for August 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). 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. 89-92 TABLE 1
           Applicable Federal Rates (AFR) for August 1989
                              Period for Compounding
                              ______________________
               Annual    Semiannual     Quarterly      Monthly
               _______   __________     _________      _______
Short-Term
___________
     AFR       8.34%       8.17%          8.09%         8.03%
110% AFR       9.19%       8.99%          8.89%         8.83%
120% AFR      10.04%       9.80%          9.68%         9.61%
Mid-Term
________
     AFR       8.31%       8.14%          8.06%         8.01%
110% AFR       9.15%       8.95%          8.85%         8.79%
120% AFR      10.01%       9.77%          9.65%         9.58%
150% AFR      12.58%      12.21%         12.03%        11.91%
175% AFR      14.76%      14.25%         14.00%        13.84%
Long-Term
_________
     AFR       8.32%       8.15%          8.07%         8.01%
110% AFR       9.17%       8.97%          8.87%         8.81%
120% AFR      10.02%       9.78%          9.66%         9.59%
                       REV. RUL. 89-92 TABLE 2
                    Adjusted AFR for August 1989
                              Period for Compounding
                              ______________________
               Annual    Semiannual     Quarterly      Monthly
               ______    __________     _________      ________
Short-term
adjusted AFR   5.84%       5.76%          5.72%         5.69%
Mid-term
adjusted AFR   6.38%       6.28%          6.23%         6.20%
Long-term
adjusted AFR   6.75%       6.64%          6.59%         6.55%
                       REV. RUL. 89-92 TABLE 3
               Rates Under Section 382 for August 1989
Adjusted federal long-term rate for the current month     6.75%
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)                                         7.17%
                       REV. RUL. 89-92 TABLE 4
   Appropriate Percentages Under Section 42(b)(2) for August 1989
Appropriate percentage for the 70% present
value low-income housing credit                           8.97%
Appropriate percentage for the 30% present
value low-income housing credit                           3.84%
                       REV. RUL. 89-92 TABLE 5
               Rate under section 7520 for August 1989
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        10.00%

Rev. Rul. 89-92, 1989-2 C.B. 210, 1989-32 I.R.B. 52.